TOP Ships Inc (NASDAQ: TOPS)
TOP Ships is having an incredibly strong day in the market today. When the trading session opened, the stock was already trading on incredible gains. From there, we have seen some slow downward movement, but the stock is holding onto massive profits. Below, we'll talk about what we're seeing from TOPS, why, and what we'll be watching for ahead.
What We're Seeing From TOPS
As mentioned above, TOP Ships is having an incredibly strong day in the market today. At the opening bell, the stock was already trading with massive gains. Throughout the day, the stock has seen a slight correction, but the gains are still well worth writing home about. At the moment (10:59), TOPS is trading at $4.25 per share after a gain of $1.25 per share (41.67%) thus far today.
Why The Stock Is Up
As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains on TOPS. As soon as we received the alert, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, there's a little more to it than usual.
First and foremost, we've seen a recent rise of the bulls, so to speak, surrounding shipping - not just TOP Ships, but the entire industry. The industry has been down on its luck for some time, but things are changing. With presidential promises surrounding trade agreements that will allow for higher shipping prices, investors have started to take notice. On top of that, we've seen tons of recent private equity purchases, and big ones at that, in the shipping sector. This is fueling confidence in the sector, as investors see that smart money is making moves.
Because of all of this, there's already a pretty bullish opinion. So, it doesn't take much to push investors into a frenzy. With that said, today, it's starting to come to the attention of investors that the prices of key materials like iron and steel are increasing in China. As a result, it is expected that shipping demand associated with the Asian region is likely to climb. This is causing excitement among investors and sending TOPS through the roof!
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on TOPS and, really, the entire shipping sector as a whole. In particular, we'll be watching for further data with regard to growth in demand. We'll also be watching as the trade war between the US and China plays out, as this could cause quite a bit of movement in the sector. We'll continue to keep a close eye on the news and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!