Early this morning, Athens-based DryShips announced that it will ask shareholders to vote on whether or not it will issue a 3-for-1 stock split. The shipping company stated that its board of directors plans to call a special meeting of shareholders to OK an amendment to increase its authorized common stock. If approved, the shares will be issued in the form of a stock dividend.
DRYS is a solid performer, but as a contrarian, the impressive percentage of float sold short (17% to be exact) is a true bullish driver. Should short sellers deem today's news as a harbinger of continued bullishness, we could see a bit of a short-squeeze. That said, any short-squeeze would be short-lived, as it would take less than a day to buy back the 3.2 million shorted DRYS shares. The stock is ever-so-slightly higher in early trading after announcing the news.