Globus Maritime Ltd (NASDAQ: GLBS) is rocketing in the market early this morning, with gains that are better displayed in multiples than percentages. However, the company hasn’t issued any news for more than three months. So, what’s the deal? Today, we’ll talk about:
- What’s sending GLBS stock up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why GLBS Is Gaining
As mentioned above, Globus Maritime is having an incredibly strong start to the trading session this morning, but with no news, many are scratching their heads wondering exactly what’s going on. The truth is that the cause of the gains here is two-fold.
First and foremost, recent news surrounding the trade war between the United States and China has been positive. Should the trade war come to an end, we will likely see increased shipping demand between these regions, leading to a potential opportunity to improve revenue and provide value to investors.
However, there is no assurance that a deal will be made between the two companies, nor that GLBS will directly benefit if they do. Nonetheless, this is promising news that seems to have investors excited about the shipping sector as a whole.
Moreover, we recently saw an update to the GLBS quote page on CNN Buisiness. According to the page, GLBS as the center of an initiation in which an analyst set a price target of $200 on the stock. Considering the current price of the stock, that price target insinuates that there is potential for more than 4,000% growth here.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. When it comes to Globus, the news proved to be overwhelmingly positive.
After all, the company has the potential to benefit greatly from easing trade war tensions. Moreover, the recent analyst note on CNN, showing the $200 price target, is also likely leading to quite a bit of excitement.
So, it’s not surprising to see that investors are pushing the stock up. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:29), GLBS is trading at $9.77 per share after a gain of $5.33 per share or 120.05% 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 GLBS. In particular, we’re interested in following the story surrounding the trade war news as this will likely directly reflect on the stock and others in the sector. We’re also digging in for a reason for the $200 price target. While the stock may grow from here, we view this target as outlandish. Nonetheless, there could be a good reason for it and we’ll be digging to find it. We’ll also keep a close eye on the news and bring it to you as it breaks!
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