Castor Maritime Inc (NASDAQ: CTRM) is headed for the top for yet another session this morning. However, if you’re looking for press releases or SEC filings, you’ll be hard pressed to find anything. So, what’s the deal?
The gains seem to be the result of retail investors banding behind the company and its aggressive fleet expansion. Here’s what’s happening:
Skip to What You Want to Read
- Castor Maritime Gains Retail Investor Backing
- Aggressive Expansion Helps Drive the Move
- Final Thoughts
Castor Maritime Gains Retail Investor Backing
As mentioned above, Castor Maritime stock is flying in the premarket hours this morning, doing more of what we’ve seen from the stock early this year. However, with no news from the company, many are wondering why the stock is flying.
Well, the movement in CTRM stock is likely closely related to what’s been going on with what are being called Reddit stocks. Essentially, members of the Wall Street Bets group on Reddit have been squeezing the shorts out of targeted stocks, sending companies like GameStop, Express, and several others screaming for the top.
Recently, there has been a ton of chatter about CTRM on the Wall Street Bets Reddit. So, this is likely playing a major role in the share price movement that we’ve seen as of late. Nonetheless, there’s a good reason to be excited beyond the Reddit run.
Aggressive Expansion Helps Drive the Move
Recently, Castor Maritime has been going through a pretty aggressive expansion of its fleet. As a dry bulk shipping company, the larger the company’s fleet gets, the stronger opportunity it has to generate revenue, and ultimately profits for investors.
Keep in mind, CTRM is a relatively young company. In fact, back in 2018, the company only had one shipping vessel to its name. However, that’s changing quickly. In fact, the company has already announced the purchase of two vessels this year.
In January, the company said that it purchased a Capesize dry bulk carrier, the type of carrier that is known for the shipment of iron ore and other key basic materials. The company is also seemingly getting in the oil and gas shipping game with the purchase of a tanker back in February.
Not to mention, the tanker is already under agreement to generate $15,000 per day for the company. That’s nothing to shake a stick at, and while the company has signed a profit sharing agreement and won’t take 100% of the funds made, it has also minimized its risk through the deal.
Not to mention, there’s never been a better time for an aggressive expansion like this. You see, January had some of the highest dry bulk shipping rates seen in years. As the COVID-19 pandemic is quickly becoming a thing of the past and demand for shipping increases, rates are likely to only continue going up, which is great news for CTRM and its investors as the company continues to move forward with the expansion of its fleet.
Sure, there are risks to consider before diving into CTRM. Keep in mind, the stock is in the penny territory and at this stage in the game, dilution can happen. Nonetheless, the risks on the stock seem to be overshadowed by the potential.
Ultimately, the shipping industry is expected to see a spike in demand, and rates are expected to continue on the upside. So, what Castor Maritime is doing is moving forward with an aggressive expansion at a time when the market strongly supports these types of efforts.
All told, with the expansion underway, and the market seeing growth in leaps and bounds, it only makes sense that CTRM stock has more room for growth.