Top Ships Inc (NASDAQ: TOPS) is having a relatively rough start to the trading session this morning. However, if you go looking for recent news or SEC filings that caused the decline, you’re not going to find much. Nonetheless, there’s always a reason for movement in the market. Today, we’ll talk about:
- Why TOPS is falling;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why TOPS Is Falling
As mentioned above, Top Ships is having a relatively rough start to the trading session, but the company has released no news. Nonetheless, we believe that we’ve found the reason for the declines.
TOPS has been headed up for a couple of sessions now, topping off the gains with a 55.12% run in the market yesterday. The gains are not stock specific either. It seems like most shipping companies on the market have seen pretty strong runs. The reason is simple. President Trump put an end to the Postal Treaty. As a result, there is quite a bit more room for shipping companies that ship products into the United States to earn revenue. So, the gains came for a very good reason.
Nonetheless, what goes up must come down. At the end of the day, when we see big runs, we often see some profit taking at the top. That seems to be the case here. At the moment, shipping stocks across the board, including TOPS, seem to be taking a bit of a dive as profit takers take control of the industry.
What We’re Seeing From The Stock
As investors, one of the many lessons that we learn is that you’ve got to know when to hold ’em and know when to fold ’em. While the Top Ships run and run in the rest of the shipping sector may not be over, profit taking is likely a good idea today as we await support and get back in at a lower price. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (8:27), TOPS is trading at $1.82 per share after a loss of $0.15 per share or 7.61% 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 TOPS as well as the rest of the shipping sector. We’re most interested in seeing how the company and its competitors take advantage of the end of the Postal Treaty. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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