Sino-Global Shipping America, Ltd. (NASDAQ: SINO)
Lately, the shipping industry has seen incredible gains. However, today, some of the stocks in the industry are falling. Nonetheless, Sino-Global Shipping is holding onto its gains in a big way. In fact, the stock is still well in the green today. Below, we’ll talk about what we’re seeing from the stock, why, and what we will be watching with regard to SINO ahead.
What We’re Seeing From SINO
As mentioned above, Sino-Global Shipping has had an incredible time in the market over the past few trading sessions, and the gains we’ve seen on the stock are continuing today. While the stock has been falling off of today’s highs, it is still well into the green. At the moment (10:29), SINO is trading at $9.01 per share after a gain of $2.28 per share or 33.88% thus far today.
Why The Stock Is Climbing
The truth is that the entire shipping industry has been seeing incredible gains. This isn’t something that is SINO specific. The truth is that there are two big factors that are sending shipping stocks toward the sky…
- Donald Trump – First and foremost, the election of Donald Trump as the next President of the United States plays a big role here. Trump has been very adamant that he is going to rework trade agreements to work in the favor of the United States. Part of this would be reducing the instances of state based shipping prices. As a result, shipping demand will likely climb and inflation is near for the industry. So, Sino-Global shipping and other stocks in the sector are benefiting greatly from the election.
- Baltic Dry Index – Another factor here is the Baltic Dry Index. This index tracks the shipping industry, pricing, and demand. The index has been climbing as of late suggesting that demand is climbing and that prices will follow. Of course, this benefits SINO in a positive way too!
What We’ll Be Watching For Ahead
Over the past few days, SINO and other shipping stocks have been running on what seems to be a bubble. Sector wide, we’re starting to see corrections, and Sino-Global Shipping will likely go through a correction of its own. As a result, I would suggest waiting for a dip to make a move. Nonetheless, the long term game looks solid for SINO and others in the industry!
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