Stock Forecast Quick Win by the Algorithm: DryShips Sinks

Quick Win by the Algorithm

On June 16 2017, the I Know First algorithm issued a bearish forecast for DryShips Inc. (NASDAQ: DRYS), with a signal of -55.37 and a predictability of 0.17. In accordance with the forecast, the company’s stock price plunged by 30.00% in just 3 days, indicating a Quick Win by I Know First algorithm.


DryShips Inc is a dry bulk shipping company, with its executive offices in Amaroussion, Greece.


DRYS plunged from around $1.75 on June 16, 2017 to below $1.25, indicating a loss of 30% over the 3-day holding period.

Bulk shipping industry has been caught in a perfect storm. The industry is full with carriers, providing services with low or no differentiation. What makes the situation worse is the softening in the demand growth. The market just had experienced a miserable 2016, and is still foggy because of the uncertainty in emerging markets such as China, who is the major importer of dry bulk products.

DryShips announced a 1-for-5 reverse stock split on June 19, 2017, which led to a 30% slump in stock price when the market started trading. Before this decision, the company had offered a 1-for-7 reverse split on May 2, 2017. Investors interpreted these actions as dying kicks of the company. NASDAQ has requirement regarding a minimum stock price of one dollar to remain on the list of main exchange. DRYS was trading below $2 at June 16 (Friday), risking a removal.

To conclude, investors were losing confidence in the company because of the gloomy environment. The reverse split was the last draw to sink DryShips.

Again, I Know First Algorithm showed great ability in forecasting market movement.


This bullish forecast on DRYS was sent to current I Know First subscribers on June 5, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.