TOP Ships Inc (NASDAQ: TOPS) has been a very interesting stock to watch as of late. Really, that goes for the entire shipping sector. Nonetheless, after quite a bit of declines from recent highs, the stock seems to have found some support. Moreover, there are some key fundamental reasons that this stock could climb ahead. Today, we’ll talk about:
- What’s going on with TOPS;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
TOPS Could Run From Here
Top Ships has been an incredibly interesting stock to watch over the past month. The stock started 30 days ago at $1.10 per share. It ran to $2.10 per share before going on a bit of a decline. Nonetheless, the stock seems to have found support at $1.42 per share and has been on the uptrend through yesterday’s trading session and the start of today’s.
With the stock reaching the bottom, it looks like it is poised to start heading back up. Especially considering that there hasn’t been any negative news about the company that would suggest declines. So, from that standpoint, TOPS could see more gains ahead.
Fundamentally, This Stock Could Be A Great Buy
From a fundamental standpoint TOPS also looks pretty promising. Lately, there several bits of news that help the shipping sector all around. The two biggest stories helping push the sector upward include:
- Postal Treaty – Recently, President Trump announced the end of the Postal Treaty. The treaty was more than 140 years old and limited pricing on shipping. While this made it easier to get products to the United States, shippers bore some losses associated with it. So, the end of the treaty gives the shipping sector the opportunity to grow ahead.
- Oil Prices – Oil prices have been jumpy as of late, and the instability comes from a fear that a new supply glut may be ahead of us. While there are some economic implications to consider here, it’s also worth considering that one of the largest costs to shippers is fuel. Especially dry bulk shippers like TOP Ships. So, lower fuel costs could have an impact on the company’s bottom line.
Finally, TOPS recently announced a time charter agreement with BP. adding about $10 million to its revenue backlog, which continues to grow. This revenue backlog growth is something for investors to be excited about. Sure, it’s not money in the bank, but it’s contractual money that will likely make its way there.
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 leads to moves. While news surrounding TOP Ships has been positive as of late, the stock has been on a decline. Nonetheless, I believe that the stock has reached support, and chances are that it will continue upward ahead. Today, it’s headed in the right direction. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:37), TOPS is trading at $1.47 per share after a gain of $0.03 per share or 2.09% 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 improving shipping sector. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!