National Bank of Greece (ADR) (NBG), DryShips Inc. (DRYS): A Tour of Countries, Greece

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One of the things the company does have on its side though is its stake in Ocean Rig. The value of DryShips’ stake in this underwater oil drilling company exceeds Dryships’ current market capitalization. While this appears to be a great deal since investors would come out ahead by valuing the shipping business at zero, we have to keep in mind that DryShips Inc. (NASDAQ:DRYS) has been selling off shares of Ocean Rig to pay its bills and may have to continue doing this in the future if losses in shipping do not stop. Ultimately, a bet on DryShips is a bet on the water transportation industry. If the industry turns around as demand picks up and shipping rates rise, DryShips Inc. (NASDAQ:DRYS) could very well turn out to be a winner thanks to its worldwide presence and bargain basement valuation. Conversely, a shipping market that continues to stagnate could force DryShips to sell more of Ocean Rig to cover losses, eventually destroying the value inherent in the company. Like NBG, DryShips Inc. (NASDAQ:DRYS) is a high-risk bet with great reward and great loss potential.

Prices slashed on Greek investments

When the Greek debt bubble began to burst, Greece’s economy was thrown into chaos. A lingering recession coupled with writedowns in debt values have forced the recapitalizations of the nation’s largest financial institutions. Greek shipper DryShips Inc. (NASDAQ:DRYS) is also experiencing problems as the global recession has negatively impacted earnings making a once proud shipper into a speculation play. Right now, Greece is the ultimate contrarian investment as investors are fearful of the country’s prospects and those of the companies that call Greece home. For investors with a high risk tolerance, further research may help them decide if Greece is a suitable place to invest some of their funds.

The article A Tour of Countries: Greece originally appeared on Fool.com and is written by Alexander MacLennan.

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