DRYS Stock Plummets After Allegedly Misleading SEC
DryShips Inc. (NASDAQ:DRYS) is down nearly 14% as DRYS stock crashed following revelations that the shipping company stands accused of lying to the U.S. Securities and Exchange Commission (SEC).
The volatile DRYS stock took another turn for the worse following information about its potential backroom dealings around the SEC came to light. The company stands accused of using Panama Paper proxies and corrupt Canadian officials in order to help it circumvent the SEC, and therefore misrepresent multiple 6-K filings. This has understandably rocked investor confidence in DRYS stock. (Source: “DryShips (DRYS) Stock: Falling Hard On Lies To SEC!” CNA Finance, January 23, 2017.)
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And, to make matters worse for the beleaguered shipping company, it seems that the false reports given to the SEC run all the way to the top, with DryShips Inc. CEO George Economou allegedly being heavily involved with the unfaithful SEC dealings.
With its top executive alleged to have taken part in the scheme, DRYS stock could be headed into a whole new world of hurt following these accusations.
It’s not as if DRYS stock hasn’t always been known for its capricious behavior, but Tuesday marks a new low point. Previously, rapid shifts in the DryShips stock value were attributed to stock splits or an influx of day traders looking to make a quick buck off of wildly volatile prices. The underhanded dealings with the SEC will naturally have ramifications beyond the usual volatility we see out of DryShips.
And this type of news is not what DryShips needed. Dryships stock collapsed by nearly 100% in share price over the course of 2016, punctuated by rapid growths followed by equally swift dives. While you never want to be too hasty when counting out a ticker, DRYS stock has certainly seen better days and may be in store for worse yet to come.
We’ll be keeping a close eye on DryShips as the story develops and keep you up to date on any other seismic shifts in the stock.
