Euroseas Ltd. (NASDAQ: ESEA) is having an overwhelmingly strong start to the trading session this morning. However, if you go digging for press releases or SEC filings, you’re not going to find anything. Nonetheless, that doesn’t mean that there’s no good reason for the gains. Today, we’ll talk about:
- Why ESEA is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
ESEA Is Running For The Top
As mentioned above Euroseas is having an incredibly strong start to the trading session this morning, but there’s no news that’s leading to the gains. Nonetheless, there’s a good reason for the gains. Ultimately, the gains have to do with political news in the midst of a trade war.
Last week, President Trump announced that he would be ending the Postal Treaty with China. The treaty is one that has been in place for more than 100 years and provides lower shipping rates to shipments out of China. In fact, in 2017, the Postal Treaty saved Chinese companies around $170 million in shipping costs. Now, with the treaty behind us, shippers like ESEA and others are looking at an opportunity to earn larger revenues.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Euroseas, the news proved to be overwhelmingly positive. After all, with an ability to generate larger revenues from one of the largest countries in the world, the company may be on stronger financial footing soon. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:49), ESEA is trading at $1.83 per share after a gain of $0.51 per share or 38.64% 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 ESEA. In particular, we’re interested in following the story surrounding the company’s work to take advantage of the changing tides in the shipping sector. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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