Tuesday 6 August 2013

Divested my first US investment stock - Dryships

I've divested partially my first US stock that i bought which is Dryships.

From its corporate website:
"DryShips Inc. is an owner of drybulk carriers and tankers that operate worldwide.

Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 10 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 8 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013 and 1 during 2015.

DryShips owns a fleet of 42 drybulk carriers (including newbuildings), comprising 10 Capesize, 28 Panamax, 2 Supramax and 2 newbuilding Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of approximately 4.4 million tons, and 10 tankers, comprising 4 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.3 million tons"

I bought this stock back in November 2012 at a low of $1.52. It was more of a speculative play when i bought it. Predicting for a recovery in the shipping sector. Have been watching this stock for 1 year beforehand and when it suddenly went down to $1.50, i managed to scoop it up at $1.52.

This stock was trading at a high of $120 before it collapsed during the financial crisis in 2008/2009. Scary isn't it? I doubt anyone who bought at the peak could ever recover back their money. Anyway, i divested at $2.03 for a 31% ROI. Got back all my capital plus profits and still left some shares inside. Reason for the divestment is to reduce my risk exposure and still be able to enjoy the ride up if a recovery does happen. Now that my capital is recovered, i do not have to worry any more. The waiting game is not so tough from now onwards.


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