Every so often, investors will find valuation anomalies in the market. DryShips (Nasdaq:DRYS) looks like a good example today, as the company's stake in Ocean Rig (Nadsaq:ORIG) is actually worth more than the company's present market capitalization. Although the shipping industry is indeed struggling, and no fast turnaround looks likely, any estimation above zero means the core DryShips operations are undervalued.
A Tough Quarter, As Expected
Nobody expected a great quarter from DryShips, or at least not insofar as the drybulk and tanker operations were concerned. Net voyage revenue for shipping was down 23%, as the company saw a 4% decline in voyage days and a 20% decline in contract rates. By comparison, the majority-owned Ocean Rig drilling subsidiary saw revenue more than double for the quarter.
Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/What-Is-DryShips-Worth-With-Suffering-Shipping-Business-DRYS-ORIG-DO-RIG-PBR0228.aspx#axzz1mCOsX1dQ
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