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Should Ocean Rig Shareholders Panic?

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  • Ocean Rig priced a perplexing secondary offering below the market price and substantially below book value.
  • The apparent negative secondary has the positive outcome of reducing the ownership position of DryShips.
  • The stock offers a compelling value at or below the offering price.
The news of the day on Ocean Rig (NASDAQ:ORIG) continues to highlight the risks of owning a stock with a weak owner. Prior to the news of the last few weeks, DryShips (NASDAQ:DRYS) was listed as owning 59.2% of the outstanding shares. Prior to the recent moves, the position in Ocean Rig was worth more than the valuation the market gave DryShips showing the concern or its financial position.

Read the full article on Seeking Alpha.


Disclosure: No positions mentioned. Please review the disclaimer page for more details. 



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