DryShips Inc. DRYS investors are getting hammered once again this week following the battered company’s latest 8-to-1 reverse stock split. Since the company announced the split on January 19, shares have plummeted 64.4 percent in less than a week. DryShips shares, which peaked at a split-adjusted $816.00 during a dramatic December short squeeze are once again trading around $4.50 in Wednesday’s session.
DryShips shares are now down 99.7 percent in the past year, and it’s not the first time shareholders have had to endure a reverse-split selloff.
Just The Latest Reverse Split
In fact, the recent 8-to-1 reverse split comes on the heels of a 15-to-1 reverse split in November, a 4-to-1 reverse split in August and a 25-to-1 reverse split last March. DryShips is trying desperately to maintain the $1 minimum share price threshold for listing on the Nasdaq exchange and the $5 minimum share price threshold for many institutional investors.
Unfortunately, the most recent reverse split has initially produced the same results as the previous three.
Same Actions, Same Results
Shareholders who are fed up with the cycle of reverse splits and subsequent selloffs have only themselves and their fellow shareholders to blame. All of the reverse splits have been approved by shareholder vote. The recent spit was approved back in October.
As long as DryShips can keep getting enough votes, it will likely continue to push for more reverse splits as the company tries to keep its Nasdaq listing and get out from under its suffocating debt load.
As of Wednesday, Yahoo lists DryShips’ float at around 130,000 with 225,000 shares held short. Those numbers represent a staggering short percent of float of 163 percent.
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