Castor Maritime (NASDAQ: CTRM) converged to a close at $1.00 which is a loss of 1.09%. This is a steep drop from the recent 1-year high of $2.60. For the past 5 trading sessions, it has accumulated a loss of more than 17%. The volume of trade was roughly 78.3 million shares.
Castor Maritime’s history
Castor Maritime is a global shipping company that specifically for bulk dry goods that is based in the land of Cypress (2016). The main dry shipping items that it usually ships out in bulk are minerals and grains. The company started trading on the NASDAQ exchange in 2019 and evolved with a market capitalization of over $560 million.
Acquisition of new vessel
Castor Maritime on February 18, 2021, announced an acquisition of a vessel, namely a purchase of a Korean-structured Kamsarmax bulk carrier through a third party for a purchase price of $14.8 million. This purchase was done through a 100% owned subsidiary of Castor Maritime. The deal will be completed when the vessel is delivered which is to take place before the end of the first quarter or after its end.
The company has recorded 425.79% gains over the past six months according to the daily chart but it is significantly lower than the latest low trading price by an 800% mark. While analyzing the average trade volume of 174.9 million shares, the CTRM has an active trade volume of 78.3 million on its most recent trading day.
How do investors feel about shipping industry stocks?
The sentiment about stocks like the goods shipping industry is that there is no excitement and thrill of news or technological progress to drastically change the fundamental outlook of their stocks. It does not resemble the growth-potential of the EV industry, nor can it be volatile like cryptocurrency and the news like that of clinical breakthroughs of penny biotech stocks are simply not the factors that will affect this stock.
However, the shipping industry is concentrated at the top while being an underrated sector that does not pass through the radar of most investors. This is exactly the reason that the Castor Maritime is the cream of the crop since its reopening after covid-19, demands have increased due to which the bull for Castor Maritime is highly undervalued.
Castor Maritime Inc (NASDAQ: CTRM) has already made its company’s profile look profitable since 2017 and up till the pandemic hit in 2019. Considering the fact it was founded in 2016, this overwhelming positive growth and sentiment was quick to build up.
Strong Core Foundation and Fundamentals of Castor Maritime
Petros Panagioditis who is the founder of Castor Maritime currently is still instated as the CEO and CFO of the company. The shipping industry’s skill and knowledge were passed down as heritage to the Panagioditis family as the grandfather of Petros, Gabriel Panagioditis is a tycoon in the company who is listed as one of the global billionaires. Similarly, Petros’s sister Ismini has a literally has sister-company that is a global shipping fleet management company that looks after the maintenance of ships.
Both companies have extensive money as well as a wealth of knowledge to back-up their shipping companies in long-term sustainability. The BODs also have in-depth work experience in the Greek shipping business and thus this provides a strong foundation to the operational fundamentals of the company.
Castor Maritime is a strong positive play for 2021
Currently, Castor Maritime has been playing right on foreseeing the market demand after covid-19 recovery to swell. Therefore, it has been acquiring second-hand market vessels since 2020 to expand its fleet and now consists of an impressive 12 ship fleet. The company has still managed to stay mostly debt-free since 2016. Its gross & operating margin is really beating the competitors in the shipping industry by a current value of 33% and 23.7% respectively.
Biden has approved the supply of rare earth metals that are needed in highly finished goods and thus is a source of good news for the mineral shipping companies. Furthermore, the outlook of Castor is phenomenal with the stock surging over 500% in 2021 and still driving its growth. It has maintained a strong balance sheet with relatively minimal debt despite adding 6 new vessels to its collection and is bent on breaking out an impressive Q4 earnings report.
The company has been gaining a lot of attention as several institutional investors and investment management funds have acquired well over 13 million shares individually. With sentiments of Biden looking to restore America to its former glory of a global economic and trade leader, the opening of trade routes to countries like China seem plausible for the foreseeable future. Once this happens, it will pave the road for Castor Maritime that has been firing up on all cylinders since the revival of the economy after the pandemic.