Dry Bulk Stocks Sink as DryShips (DRYS) Raises 'Going Concern' Issue

The dry bulk shipping sector is falling sharply today on the back of several news items.

First, DryShips (Nasdaq: DRYS), the most heavily traded stock in the bulk shipping sector, filed its annual report on Form 20-F this morning. In an explanatory "going concern" paragraph, DryShips said it has "substantial doubt about its ability to continue as a going concern." The company cited issues as "the Company's inability to comply with financial covenants under its current loan agreements as of December 31, 2008, difficulties in meeting its financing needs and its negative working capital position" among other matters. Shares of DryShips are currently down more than 17% on the news.

Also affecting the sector today, the Dry Bulk Index, which measures day-to-date shipping rates among the dry bulkers, is dropping. The index has fallen about 32 points this morning, most recently trading around 1,646.

• Teekay (NYSE: TK) down 8.5%
  
• Diana Shipping (NYSE: DSX) down 12%
  
• Seaspan (NYSE: SSW) down 14%
  
• Genco Shipping & Trading (NYSE: GNK) down 11.8%
  
• Navios Maritime (NYSE: NM) down 11.7%
  
• TBS Int'l (Nasdaq: TBSI) down 13%
  
• Excel Maritime (NYSE: EXM) down 14.3%
  
• Eagle Bulk Shipping (Nasdaq: EGLE) down 12%
  
• Safe Bulkers (NYSE: SB) down 10.6%
  
• Star Bulk Carriers (Nasdaq: SBLK) down 12.6%

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