Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

1.Dryships (DRYS)

Recent price: $2.80

The dry shipping industry, which carries dry-bulk goods on massive container ships, has been beset by weak demand and too much capacity. As a result, lease rates for these ships plunged, leading many industry players scramble for survival.

DryShips, which traded above $100 in 2008, is now worth less than $3 a share. Yet just-released quarterly results imply that a bottom has been reached. Better-than-expected lease rates led to $318 million in revenue, ahead of the $296 million consensus forecast. Better still, the company topped the consensus profit forecast for the first time in four quarters, earning two cents more than the $0.14 prediction.

Profits would have been a lot more robust if not for some bad bets on currency swaps. This stock will never revisit its past heights, simply because its share count has risen nearly 1,000% in the past four years, but a return to $5 or even $7 isn't out of the question now that industry dynamics are reversing.

If you liked this article you might like

Adobe Systems, Salesforce.com, Cummins: 'Mad Money' Lightning Round

The Kids Are Taking Over the World: Cramer's 'Mad Money' Recap (Thursday 5/11/17)

DryShips Stock Rises After Paying Off its Commercial Loan Facility

Matson Buyers Will Have to Be Patient

How to Play a Challenging and Rising DryShips