DryShips (NASDAQ:DRYS) soared by more than 50% in today’s trade following news that CEO George Economou agreed to enter into a private placement with the company and the company ended its controversial stock issuance to Kalani Investments.
But Heard On The Street‘s Spencer Jakab notes that Economou’s payment “effectively will consist of shipping assets, redeemed loans and a series of preferred stock that had given him super-voting rights that had cemented his control over the company during the rapid dilution.”
“Economou remains the captain of this ship. That is reason enough for those fortunate enough to have made a quick gain to hop off at the next port,” Jakab writes.
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