Dry Ships bounces 8 points

I wrote about this stock last week.
http://aaronandmoses.blogspot.com/2008/05/dry-ships-dips.html

Today, in Investor's Business Daily there was a nice article titled:

Demand For Deep-Water Drilling Rigs In Faraway Places Stays Hot

Offshore drilling has become the last frontier in the exploration for new oil and natural gas reserves.

The easy-to-get oil on every continent except Antarctica has been found, and geologists believe that there are few "elephant" oil fields left to be discovered.

One of the hottest markets today is Brazil, which recently discovered two hydrocarbon-rich basins off its shores. The country announced it has leased 80% of the world's deep-sea offshore oil rigs.

Another new market is emerging halfway across the world off the coast of India. The discovery of a promising natural gas block, the Krishna Godvari basin, could make the country more oil self-reliant.

Brazil and India represent the hidden potential that lies beneath the ocean's surface, but no oil company can obtain it without a drilling rig.
http://www.investors.com/editorial/IBDArticles.asp?artsec=7&issue=20080528

The article didn't mention DRYS, but they have deep sea rigs. When the street figures this out the stock will be pushing new highs.

A competitor of DRYS, Genco Shipping and Trading (GNK 70.49) which closed on a sale of 3.7 million shares at 75.47 after the close today, panned DRYS deap sea acquisition in December.

"Peter C. Georgiopoulos, chairman of dry bulk shipper Genco Shipping & Trading wasn't impressed by the deal, saying that investors entrust their money with the management of a company to do what the management originally set out to do. "For us to go buy oil rigs is a completely different business and that's not what investors signed on for," he said. "What I find shocking is that you see a lot of our competitors doing things that are not part of their basic business with no good corporate governance and sometimes without management."
http://www.forbes.com/2007/12/17/dryships-drybulk-closer-markets-equity-cx_ra_1217markets41.html

Looks like Peter was wrong, as the acquisition by DRYS is looking exceedingly shrewd now. But would you actually expect a competitor to really tell the truth about it's competition?

The stock should get another bump tomorrow, as an analyst had good things to say about DRYS after the close, coupled with the IBD news on deep-water-drilling.