Robert Hsu and DRYS

Original Post Date: August 7th 2008

Removed copyright content and reposted

Mr. Navellier was not the only InvestorPlace expert to suggest DRYS as an intelligent investment.

His friend and colleauge Mr. Robert Hsu also suggested to buy DRYS on his $3.000/year Asia Pacific Edge newsletter.

On the October 31st issue Mr. Hsu was saying:

Grab shares of our new company, DryShips (NASDAQ: DRYS), below $125. This Greek dry bulk shipper will benefit from rising shipping rates and increased demand for iron ore, coal and grain from Asia.

This advice was issued before Mr. Navellier's (that was on Nov. 26th).
The close price of DRYS on October 31st was $117.86.

The following weeks Mr. Hsu wrote:

• Nov. 07 2007 - I want you to continue to buy DRYS under $125. (Closing Price $106.20)
  
• Nov. 14 2007 - I want you to continue to buy DRYS under $125. (Closing Price $92.42)
• Nov. 21 2007 - Global financial services firm Cantor Fitzgerald recently raised its price target for DryShips from $114 to $133. (Closing Price $71.38)
• Nov. 28 2007 - I want you to buy DRYS under its new buy limit of $100. (Closing Price $86.97)
• Dec. 05 2007 - If you have extra money, grab shares of our top buys of the week: [REMOVED] and DryShips (NASDAQ: DRYS). Both are good buys below our recommended limits. I believe that DRYS is a bargain right now, and I want you to continue to buy DRYS under $100. (Closing Price $84.30)
• Dec. 12 2007 - Continue to buy DRYS under $100. (Closing Price $88.30)
• Dec. 19 2007 - I want you to continue to buy DRYS under $100. (Closing Price $74.74)
• Dec. 26 2007 - I want you to continue to buy DRYS under $100. (Closing Price $72.79)
• Jan. 02 2009 - I want you to continue to buy DRYS under $100. (Closing Price $78.11)

On January 9th 2008, after a closing price of $62.71, finally Mr. Hsu wrote to his paying readers:

Sell your position in DryShips (NASDAQ: DRYS). I'm concerned about the stock's recent performance in the face of the current market volatility.

A couple of comments now.

1. DRYS more than doubled from less than $60 in August 2007 to more than 120$ in October 2007. Technical analysis teaches that one should take a long position when a trend is starting. Who wants to get in after a 100% gain in 2 months?
2. At the end of October 2007 the support were broken. Technical analysis teaches to sell once supports are broken. Getting in at the end of October was a gamble, with high chances to lose.
   

In a little more than 2 months Mr. Hsu's paying subscribers were able to achieve the following results:

1. -46% on what they invested in DRYS
2. 500$ lost in the 2 months subscription to Asia pacific Edge

Worse than Mr. Navellier.