After rallying for the last 3 sessions, Castor Maritime Inc. (CTRM) stock seems to be continuing the trend today. The stock price of the global shipping company has been surging 9.43% in the pre-market session hovering at $1.16 as of 7:02 a.m. EST and that too in absence of any news directly linked to the surge.
So, what’s happening?
Castor Maritime Inc. is a global transportation company with dry bulk vessels that are part of its own fleet. Mostly chartered out on short- to medium-term charters, the Company’s dry bulk vessels transport a variety of dry bulk cargoes, such as coal, grain, lumber, and other materials, across a wide range of worldwide shipping routes.
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There is no recent news about the company which could cause its share price to surge but has early this month bought a 2009 Japan-built Kamsarmax dry bulk carrier from an unaffiliated third party for a price of $14.5 million through a separate wholly-owned subsidiary. The acquisition will be completed with the delivery of the vessel in the first quarter of this year and is contingent upon the satisfaction of certain customary closing conditions.
But, on the other hand, the stock seems to be part of the next wave of speculation on the social media platform of Reddit. Castor Maritime has been attracting traders’ attention as it is among the recent trends on the platform. In order to start a short squeeze, some people believe that it is necessary to buy the heavily shorted penny stock like Castor Maritime. If they’re right, then it could raise the share price of the shipping company, at least temporarily if not permanently.
Castor Maritime’s stock is likely to see much of the volatility in the days ahead due to the upcoming battle between the investors who are in favor of the argument with the investors who see the stock another way.