Sino-Global Shipping America, Ltd. (NASDAQ: SINO)
Sino-Global Shipping America is having an incredible day in the market today, and for good reason. The company announced that it will be launching a new app that will allow for stronger shipment management. Today, we’ll talk about the details of the announcement, how the stock reacted to the news, and what we can expect to see from SINO ahead. So, let’s get right to it…
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SINO Soars On App Announcement
As mentioned above, Sino-Global Shipping America is having a strong day in the market today after announcing that it plans to launch a new app. The new application will be designed to help the shipping company better manage shipments.
According to a statement made by the company, the new application will provide a full-service logistics platform between the United States and China. The app will be used for short-haul trucking in the United States. This is a term that is generally used to describe a form of shipping that requires driving within less than a 150-mile radius. As a result of the application, SINO will likely be able to better manage their shipments between China and the United States. This equates to management of more than 25 million containers per year. In a statement, CEO Lei Cao said the following:
“We believe that Sino-Global is in the right position to solve bottleneck issues in this traditional industry with mobile application technology…”
How The Market Reacted To The News
One of the first things that we learn as investors is that the news moves the market. When positive news is released with regard to a publicly-traded company, we can expect to see gains in the stock. Adversely, negative news will lead to declines in the market. The news that was released by SINO today was overwhelmingly positive. The company is doing incredibly well when it comes to shipments from China to the United States. However, adding the new application will likely lead to an even better performance. As a result, the stock is gaining. Currently (1:48), Sino-Global Shipping shares are trading at $1.65 per share after a gain of $0.25 per share (17.86%) so far today.
What We Can Expect To See Moving Forward
While the news that was released today was overwhelmingly positive, I’m expecting that SINO will fall off of highs. Sure, an app to better track and manage shipments is a great move. However, the company has quite a bit of problems that it needs to work through. First and foremost, growth in earnings per share on the stock has been weak at best. In fact, net income is quickly deteriorating and investors aren’t seeing much by way of return on equity. At the end of the day, SINO is a victim of the current market conditions in the shipping industry. In the foreseeable future, I’m not expecting to see much by way of positivity.
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What Do You Think?
Where do you think SINO is headed moving forward? Join the discussion at TalkTRENDZ!
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