Skip to main content

Market Overview

Shippers On A Run Again Amid No News

Share:
Shippers On A Run Again Amid No News

Shipping stocks were trading notably higher on Friday on minimal news.

The only notable news release that would affect the group was a press release by Diana Shipping Inc. (NYSE: DSX), in which the global shipping company specializing in the ownership of dry bulk vessels entered into a time charter contract with Koch Shipping Pte. Ltd., Singapore for one of its capesize dry bulk vessels, the m/v P. S. Palios.

Ironically, Diana Shipping's stock is among the few shipping names trading in the red, as shares were lower by 0.26 percent at $3.79.

Globus Maritime Ltd (NASDAQ: GLBS) led all shipping companies higher as the stock gained more than 135 percent on Friday before a halt to the stock kicked in at 11:21 a.m. ET.

Globus Maritime's investor relations website showed no new press releases and the company's presentations page hasn't seen any new entries since December, 2015.

Here is a roundup of other shipping companies with notable gains that can't be attributed to any company specific news:

  • Diana Containerships Inc (NASDAQ: DCIX): $3.23, up 20.52 percent.
  • Euroseas Ltd. (NASDAQ: ESEA): $1.77, up 10.66 percent.
  • Paragon Shipping Inc. (OTC: PRGNF): $0.12, up 12.15 percent.
  • Star Bulk Carriers Corp. (NASDAQ: SBLK): $7.17, up 6.86 percent.

Deja Vu

The shipping sector dominated headlines back in November 2016 when a relatively unknown shipping company called DryShips Inc. (NASDAQ: DRYS) traded from under $4 a share to above $100 and then back to below $10 within just days. On Friday, the stock hit a 52-week low of $1.69 but shortly after 12:00 p.m. ET the stock was higher by more than 14 percent on the day at $2.10.

As Benzinga previously explained, the combination of a high short interest and low float creates a cocktail as volatile and explosive as nitroglycerine.

When a short squeeze occurs in a typical stock, short sellers can cut their losses by throwing in the towel and covering at any point. However, when a stock has a low float, brokers may not have shares available to allow traders to close out their short positions at all.

It is possible that a short squeeze could be at play. Many investors profited greatly from DryShip's $100 per share gain but many investors were unfortunately caught on the other side of the trade.

Needless to say, buyers beware.

 

Related Articles (DRYS + DCIX)

View Comments and Join the Discussion!

Posted-In: Low FloatNews Commodities Travel Markets Movers Trading Ideas General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com