"While DRYS shares are down 37% year-to-date, shares are up 10% since 2Q14 results on August 6, which we believe showed good progress on several fronts, particularly with respect to the refinancing of the company's $700M convertible notes maturing on December 1, 2014," the firm wrote in a research note.
"Ultimately we think the company will find a debt-for-debt solution...As such, we see potential for significant upside in shares as the convert overhang clears, and investors turn their focus to upside potential from dry bulk spot exposure and valuation uplift at ORIG from its proposed MLP strategy."
More than 6.9 million shares had changed hands at 11:59 a.m., compared to the average volume of 4,741,660.
Separately, TheStreet Ratings team rates DRYSHIPS INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DRYSHIPS INC (DRYS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."