Top Ships (TOPS) Stock: Here’s Why It’s Flying!

Top Ships Inc TOPS Stock NewsTop Ships Inc (NASDAQ: TOPS) is having an incredibly strong start to the trading session this morning. However, if you’re looking for press releases, news from mainstream media about the company or SEC filings, you’re going to be disappointed. None of this has happened this morning. Nonetheless, there is a good reason for the gains. Today, we’ll talk about:

  • Why TOPS is flying;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

Why TOPS Is Flying

As mentioned above, Top Ships is having an incredibly strong start to the trading session this morning, but there hasn’t been any news released. So, what’s the deal? It all has to do with political news that hit the tape late last week.

Recently, the trade war has been heating up between the United States and China. As part of the trade war, the Trump Administration made a big move last week, putting an end to a 144-year old treaty with China known as the Postal Treaty. This treaty provided China with $170 million in savings on shipments last year.

With the end of the Postal Treaty in mind, shipping stocks like TOPS, DCIX and DRYS are flying. The idea here is that with the lack of subsdidies to China, shipping costs are going to increase. As a result, shipping companies have a direct opportunity to earn more revenue through their services. So, that’s what’s got investors so excited about TOPS and others in the sector.

What We’re Seeing From The StockĀ 

One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Top Ships, the news proved to be positive. After all, the end of the Postal Treaty may give the company the opportunity to increase revenue in a time when this opportunity is much needed. So, it comes as no surprise that excited investors are sending the stock screaming for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:13) TOPS is trading at $2.20 per share after a gain of $0.98 per share or 73.23% 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. In particular, we’re interested in following the story surrounding the company’s moves to take advantage of the changing climate in the shipping sector. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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