DryShips is Totally on Fire +650% Since Last Yearposted by MR WAVETHEORY at 9/23/2007 08:14:00 AM
I wonder how much further this stock has to go given the slowdown in the US. It trades at 13X current year P/E and 7X forward P/E.
A well known investor wrote that the time to buy commodity related stocks is when their P/Es are really, really high - when they are unprofitable. The time to sell is when their P/Es are low - when they reach peak earnings. Commodity related stocks operate on the business cycle.
Has the time arrived to sell for Dryships? Revenues rose over 100% percent last year to $338 million and earnings were $216 million. It trades at an eyepopping 8x trailing twelve month revenues. Sell sell sell?