Diana Containerships Inc (NASDAQ: DCIX) is having an incredibly strong start to the trading session this morning after the company announced the continuation of a time charter agreement. Of course, the continuation means that the company will enjoy expanded revenue through the agreement, leading to excitement among investors and sending the stock on a run for the top. Today, we’ll talk about:
- The continuation of the time charger agreement;
- what we’re seeing from the stock as a result;
- and what we’ll be watching for with regard to DCIX ahead.
DCIX Announces Time Charter Continuation
As mentioned above, Diana Containerships is having an incredibly strong trading session in the market today after the company announced the continuation of an agreement. In a press release issued early this morning, the company announced that, through a wholly owned subsidiary, it has agreed to extend a time charter contract. The contract was by and between Orient Overseas Container Line Ltd., Hong Kong and surrounds one of the company’s Post-Panamax container vessels known as the m/v Pucon.
In the release, DCIX said that the gross charter rate is $18,000 per day. 3.75% of this rate is paid to third parties. The extension of the contract will provide this revenue for a minimum of 8 months. and a maximum of 12 months. DCIX said that the new period will start on June 22, 2018. Currently, the m/v Pucon is chartered at a gross charter rate of $10,759 per day, minus a 3.75% commission paid to third parties.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start work in the market is that it’s important to keep a close eye on the news. After all, the news causes the moves. With news that Diana Containerships has extended an agreement that will drive further revenue, it’s no surprise that the stock is making a run for the top in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:39), DCIX is trading at $1.67 per share after a gain of $0.081 per share or 5.10% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DCIX. In particular, we’re interested in following the story surrounding the company’s continued agreement and the revenue it drives. We’re also interested in following the agreements surrounding the rest of the company’s fleet. Nonetheless, we’ll keep our eyes on the news and bring it to you as it breaks!
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