Euroseas Ltd. (NASDAQ: ESEA)
Euroseas is having an incredibly strong day in the market today. Upon the opening bell, the stock found itself in the green. Throughout the morning, we’ve seen a continuation of gains, bringing the stock upward in a big way. In fact, the value of the stock has nearly doubled. Today, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to ESEA ahead.
What We’re Seeing From ESEA
As mentioned above, Euroseas is having an incredibly strong day in the market today. As soon as the opening bell rang, the stock started to make a dramatic run toward the top. As the trading session has progressed, we’ve seen more of the same. As a result, the stock has nearly doubled in value today. Currently (11:52), ESEA is trading at $2.69 per share after a gain of $1.30 per share (93.53%) thus far today.
Why The Stock Is Up Today
As usual, as soon as our partners at Trade Ideas notified us that ESEA was making a run for the top, the CNA Finance team started digging to see exactly what was causing the movement. The truth is that this one took a bit longer than usual to piece together. At the end of the day, we’ve seen no fundamental news from the company, no rumors, and the only sector-wide news is that the Baltic Dry Index is falling. Nonetheless, we did find something.
Early this morning, DryShips made an announcement that it has secured $200 million in funding and plans on working with two shipping companies on future agreements. While this news isn’t directly related to Euroseas, over the past few months, we’ve noticed a trend in the shipping sector. That trend is that when DryShips is up, others tend to follow.
What We’ll Be Watching For Ahead
While I hate to be the bearer of bad news, the CNA Finance team is looking for a sharp correction ahead. At the end of the day, there really is no valid reason for gains today. In fact, considering the Baltic Dry Index, there’s more of a reason for losses. So, if you’re playing this one, be cautious, and be ready to take your profits. Nonetheless, we’ll watch the news closely and bring it to you as it breaks!
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[Image Courtesy of Wikimedia]