I continue to detail how investors who can short shares of shipping company DryShips (NASDAQ:DRYS) should continue to do so. The stock, which has a 52-week high of more than $32,000 per share, closed Friday at just $4.00 a share. Unfortunately, the decline is likely to accelerate, given news just detailed by the company.
When the company executed its latest reverse split earlier this month, there were about 9.4 million shares outstanding after the transaction. However, there was still the massive overhang of the Kalani deal, estimated at that point to be around $150 million or so. Some investors may have been duped by the following information the company announced after that reverse split as well as earnings:
Cash and cash equivalents: Approximately $268.8 million (or $27.92 per share) Book value of vessels, net: Approximately $356.8 million (or $37.06 per share) Sifnos Loan Facility balance: Approximately $200.0 million Number of shares outstanding: 9,628,852
While those numbers make the stock look significantly undervalued, anyone that has followed DryShips in the past year knows that the situation wasn’t as it appeared. More dilution was coming, not only sending the outstanding share count soaring but also sending the book values detailed above plunging. After the bell on Friday, we received another 6-K filing from DryShips, detailing the following:
Best Value Stocks To Own For 2018: SuperValu Inc.(SVU)
- [By Demitrios Kalogeropoulos]
As for individual stocks, SUPERVALU (NYSE:SVU) and MSC Industrial (NYSE:MSM) stood out with big pricing moves after announcing quarterly business updates.
- [By Peter Graham]
Small cap grocery store stock SUPERVALU Inc (NYSE: SVU) reported Q1 2018 earnings this morning before the market opened with shares up more than 14% as Wholesale business results were outstanding. Net salesincreased 6.3% to$4.00 billion as Retail net sales were down 2.7% to $1.39 billion with the decrease reflecting identical store sales of negative 4.9% and closed stores, partially offset by sales from acquired and new stores.Total net sales within the Wholesale segment increased 12.4% to $2.56 billion primarily due to sales to new customers and increased sales to new stores operated by existing customers, partially offset by stores no longer being supplied by Supervalu and lower military sales. Retail identical store sales were negative 4.9% while fees earned under services agreements in the first quarter were $55 million versus $59 million last year. Net earnings from continuing operations was $12 million versus $20 million. The CEO commented:
- [By Casey Wilson]
Big grocery and supermarket chain stocks plummeted on June 16 when the deal was announced. Kroger Co. (NYSE: KR) sunk over 9.2%, Supervalu Inc. (NYSE: SVU) dropped 14.4%, and Wal-Mart Stores Inc. (NYSE: WMT) lost 4.7%. Meanwhile, AMZN enjoyed a nice 2.44% gain.
- [By Jon C. Ogg]
SUPERVALU Inc. (NYSE: SVU) was raised to Outperform from Sector Perform at RBC Capital Markets. Shares were indicated up 6% at $3.54 on Thursday.
Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) was indicated down 7% at $72.85 on Thursday due to results from a seizure medication study. It was downgraded to Neutral from Overweight at Piper Jaffray, and Wedbushlowered its target for the stock.
- [By Steve Symington]
The stock market was flat on Thursday ahead of a key House vote on the Republicans’ healthcare bill, which was delayed until Friday as GOP lawmakers failed to gather enough votes to proceed. TheDow Jones Industrial Averagelost just 5 points, or 0.02%, while other broader market indexes saw similar small declines.But several individual stocks delivered outsized positive returns today, including FireEye (NASDAQ:FEYE), Penn National Gaming (NASDAQ:PENN), and SUPERVALU Inc. (NYSE:SVU). Read on to see what caused these unusual positive moves.
- [By Demitrios Kalogeropoulos]
As for individual stocks, RetailMeNot (NASDAQ:SALE) and SUPERVALU (NYSE:SVU) attracted heavy investor interest following merger and acquisition news.
Best Value Stocks To Own For 2018: Starbucks Corporation(SBUX)
- [By Chris Dier-Scalise]
The IMX report also highlighted a sell-off among their clients in companies that experienced some friction during the month. Caterpillar Inc. (NYSE: CAT) was net sold as federal investigators continued their probe into the construction equipment company's export filings. Starbucks Corporation (NASDAQ: SBUX) was net sold as former CEO Howard Schultz prepared for his departure from the company in April.
- [By Ben Levisohn]
Keurigs plight (actually, JABs) is worsening, with the K-cup market slowing to almost no growth now, and Keurig continuing to lose own brands share. Starbucks (SBUX) echoed the notion of a K-cup market slowdown at its seminar on Wednesday (and is guiding for its [consumer packaged goods, or CPG,] growth below recent trends), but it expects to increase its share of total CPG coffee to 20% from 15%. Come early February it will be a year since the closing of the Keurig deal for JAB Holdings. The pressure on JAB is more significant if we take into account the high leverage of the deal (JAB contributed one fourth of the $12Bn price tag). It is a tough predicament. On the one hand we argue that to make that deal work, they need to buy more (own) brands either from the retail channel (that can be extended to CPG: Dunkin (DNKN)? Panera (PNRA)?), or outright buy CPG brands (like the entire Kraft Heinz portfolio, and or Tata Groups Eight OClock brand). But can/h ow do they fund these deals? Maybe Mars and Warren Buffett (Mars is involved in office coffee with Starbucks), private equity, and or 3G can help? While this note is not about Positive-rated Mondelez, we have mentioned before a scenario where Kraft Heinz buys Mondelez and partly funds the deal by selling its own CPG coffee business (~$3Bn we say) to JAB as well as divests the Mondelez 20% plus stakes in Keurig (North America) and Jacobs Douwe Egberts (Western Europe), which together at this stage are worth ~$7-8Bn. But, yes, JAB will need deep-pocket partners and generous lenders. Net, JAB needs to do something soon.
- [By WWW.THESTREET.COM]
Time to drink up Starbucks (SBUX) .
TheStreet’s founder and Actions Alerts PLUS manager Jim Cramer says Starbucks is working hard to fix the “mosh pit” that many of its stores face when too many customers who ordered online show up at the same time. But he thinks the coffee giant will ultimately fix the problem, so investors who don’t already own Starbucks might want to get in if the stock falls back below $59 (from $60.90 at Monday’s close).
- [By Sreekanth Anasa]
Google has had an eventful last few days. Firstly,Google’s search engine highlighted an inaccurate story claiming that President-elect Donald Trump won the popular vote in the recently concluded presidentialelections. This raises questions over Alphabet Incs ‘crown jewel, Google search. But Google has come out strongly against fake news in its search results with new Ad policies and other strict measures to have the most accurate search results. To make things worse for Alphabet, the companys drone delivery deal withStarbucks Corporation(NSDQ: SBUX) fell through last week.
Best Value Stocks To Own For 2018: Intec Pharma Ltd.(NTEC)
- [By Lisa Levin]
Intec Pharma Ltd (NASDAQ: NTEC) shares were also up, gaining 14 percent to $5.53. Intec Pharma priced 10.6 million share offering at $4.70 per share.
Best Value Stocks To Own For 2018: Liberty Interactive Corporation(QVCA)
- [By WWW.THESTREET.COM]
QVC (QVCA) was upgraded to buy from neutral at Bank of America/Merrill Lynch. $25 price target. The company can turn its sales around and deserves a higher multiple, analysts said.
Best Value Stocks To Own For 2018: Clean Energy Fuels Corp.(CLNE)
- [By Jason Hall]
Natural gas for transportation leader Clean Energy Fuels Corp (NASDAQ:CLNE) has steadily grown and improved the quality of its business and business results over the past several years. Today’s Clean Energy Fuels is leaner, has a stronger balance sheet, and is in a solid position as a market leader in a growth industry.
- [By Lisa Levin]
In trading on Wednesday, energy shares fell by 1.72 percent. Meanwhile, top losers in the sector included Clean Energy Fuels Corp (NASDAQ: CLNE), down 5 percent, and Frontline Ltd. (NYSE: FRO), down 7 percent.
- [By Michael Vodicka]
Clean Energy Fuels Corp. (CLNE) designs, builds and operates natural gas filling stations in the United States. The company supplies compressed natural gas (CNG) and liquefied natural gas (LNG), serving a fleet of 650 customers, more than 32,000 natural-gas vehicles while owning or supplying more than 350 filling stations in 32 states.