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Non-Tech : Shipping - Oil & Gas Tankers, Dry cargo, LNG -- Ignore unavailable to you. Want to Upgrade?

To: Don Hurst who wrote (287)	3/8/2010 4:39:47 PM
From: E_K_S	Read Replies (1) \| Respond to of 2660

Ocean Rig is the best thing Drys has going. In 2008 they only represented 20% of the revenues. I have been an owner of DRYs since the original IPO. Missed selling at the TOP $130/share but did eventually get my original capital out and now hold a few shares because of their Ocean Rig acquisition. messages.finance.yahoo.com I have followed the company every step of the way. I believe all of their deep drilling rigs are already under contracts (some of the highest in the industry too). One may be up for renewal but these assets are leveraged with company debt too. I believe these assets were cross collateralized so the good comes with the bad. I am still waiting for the Ocean Rig subsidiary to be spun off to Drys shareholders. However with the newly issued stock last year, Dryship shareholders will only receive 1/4 as much interest in Ocean Rig as they did in 2008 (and earlier). So even if all the rigs get long term leases at current market rates, because of share dilution, the revenue allocated to Dry's will only represent 25% of the total base not the original 50% as it appeared in 2008. The biggest beneficiary was George Economu (CEO) through his private subsidiary holdings (through Cardiff I believe) where he (and his private companies) owns or controls 25% of Ocean Rig. (Note: With the Dry's common share dilution and the new ownership interests negotiated by George, his interests in Ocean Rig could be as high as 50%!). It's hard to tell now with all of the layers of companies he controls and assets that are cross collateralized against Drys. Anyway, the Dry's shareholder received the raw end of the Ocean Rig deal (at least we should eventually get something). Any buyer of Drys will have the same ownership interests as the shareholders which is at most a 50% interest and could be much less (perhaps as low as a 25% interest). EKS