Castor Maritime is a “growth-oriented” dry bulk shipping company. The fall in the company’s stock has also got to do with its status as a “growth stock.” Rising interest rates make stocks that have...
Full Answer
How will Castor maritime's share offering affect its share price?
Apr 12, 2021 · The BDI tracks the rates shippers like Castor Maritime can get for hauling dry bulk goods (e.g., coal, iron pellets, and grain) across the ocean. The problem is, over the last three weeks, the BDI...
Is Castor maritime (CTRM) a penny stock to buy?
Apr 05, 2021 · Castor Maritime's stock price closed at $0.74 on Thursday, so shareholders were likely displeased by both the pricing of the share sale and the substantial dilution of their ownership stakes it...
Is Castor maritime's BDI slumping?
Jun 30, 2021 · Castor’s price got so low that it no longer met the Nasdaq’s listing requirements. It had to get its share price back above a dollar to remain in good standing with the exchange.
How much stock does Castor have outstanding?
Jun 25, 2020 · Why Castor Maritime's Stock Is Trading Lower Today. Castor Maritime Inc CTRM 1.88% shares were trading lower Wednesday after the company priced an $18-million public offering. "9 out of 10 trades ...
Will Castor Maritime stocks go up?
Castor Maritime (CTRM) stock forecast 2022-2025 A five year forecast for the stock, meanwhile, suggested it could be touching $9.96 by 2027. This would represent a 750% potential upside from today's $1.17 level.Jan 26, 2022
Is Castor Maritime a good stock to invest?
The Castor Maritime Inc. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average.
Is Castor Maritime undervalued?
Is Castor Maritime Inc Stock Undervalued? The current Castor Maritime Inc [CTRM] share price is $1.99. The Score for CTRM is 53, which is 6% above its historic median score of 50, and infers lower risk than normal.
Why did Castor Maritime stock drop?
So what does this mean for Castor Maritime? Basically, the same BDI that reflected Castor Maritime's ability to charge enough for its services to earn a profit last quarter is now forecasting weaker pricing that may threaten Castor Maritime's ability to earn a profit this quarter.Jun 4, 2021
Is Castor Maritime a real company?
It's Magic, It's Shipping, It's Castor! We are a growth-oriented global shipping company engaged in the seaborne transportation of a wide range of commodities along worldwide shipping routes through our ownership of dry bulk and tanker vessels.
How many ships does Castor Maritime have?
About Castor Maritime Inc. On a fully delivered basis, Castor will own a fleet of 28 vessels, with an aggregate capacity of 2.4 million dwt, consisting of 1 Capesize, 7 Kamsarmax and 11 Panamax dry bulk vessels, as well as 1 Aframax, 6 Aframax/LR2 and 2 MR1 tankers.Dec 7, 2021
Will Ctrm reverse split?
Castor announced that it will be doing a 10-for-1 reverse split on Friday, May 28. This means that someone holding, say, 1,000 shares at 40 cents each would own 100 shares at $4 each after the split is effected.May 27, 2021
Why is SNDL stock going up?
Sundial (SNDL) stock back up on strong earnings and buyback. The stock and other cannabis stocks are high right now (pun intended) as hopes grow of US decriminalization. Sundial had the added impetus from a strong earnings report and a share buyback program. This set a fire under the stock and saw it surge on Friday.Nov 15, 2021
What does castor maritime do?
Castor Maritime, Inc. engages in the provision of shipping transportation services through its ownership of dry bulk vessels.
Is CTRM a penny stock?
The most popular penny stocks with the WSB crowd largely have been plays on recent trends. These include EV name Ideanomics (NASDAQ:IDEX), and pot stock Sundial Growers (NASDAQ:SNDL). Yet, outside of that, CTRM stock is your typical penny stock.Mar 21, 2021
How much does Castor Maritime sell?
Castor Maritime will sell roughly 192.3 million shares to institutional investors at a price of $0.65 per share. The offering will raise about $125 million, before transaction-related expenses. The stock sale is expected to close on Wednesday.
Does Joe Tenebruso have a position in any of the stocks mentioned?
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The company has put new vessels to work
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years.
What happened
Investors in Castor Maritime ( NASDAQ:CTRM) haven't had a pleasant past three months, as the stock has dropped almost 50% in that time. But today shares are soaring after the shipping company reported its second-quarter 2021 earnings. As of 12:30 p.m. EDT, shares are up 23% after having risen more than 30% earlier in the day.
So what
For the three months ended June 30, Castor Maritime earned $6.5 million, building on the $1.1 million profit it made in 2021's first quarter. The company took delivery of 12 new vessels in the second quarter, making progress toward accepting the 20 new ships it has agreed to acquire since the start of the year.
Now what
The Baltic Dry Index drives the prices the company charges to move cargo. That index jumped 36% in June, and remains near five-year highs.
How much of Castor Maritime does the shareholder own?
In any case, a shareholder that owned 1% of Castor Maritime in 2019 now owns less than 0.01% of the company thanks to its unprecedented dilution. In light of this, the company picking up a few more vessels isn’t remotely enough to make up for the tsunami of new shares that have flooded the market.
How many ships does Castor have in 2021?
Castor has sought to scale up. In 2020, it doubled its fleet from three to six. And in 2021, so far, it has bulked up to 14 ships. However, those ships don’t come free.
How much is Star Bulk worth?
Star Bulk (NASDAQ: SBLK ), for example, is worth $1.5 billion and generates $700 million in annual revenues. Meanwhile, Castor is at $400 million valuation for just $18 million in annual revenues. Don’t forget that shipping companies are fairly interchangeable.
Is Castor a short squeeze?
Normally, a share price would collapse under so much new issuance. However, Castor became part of the huge short squeeze trade in January. It was one of the top held stocks on Robinhood, and was widely-discussed on Reddit.
Does Castor ship come free?
However, those ships don’t come free. The company has had to issue a mind-blowing amount of stock to make these purchases. At the end of 2019, Castor had 2.6 million shares of stock outstanding. That figure had been nearly unchanged for the past few years.
Is penny stock bad?
Not all penny stocks are bad. There’s quite a few good companies that for whatever reason end up with a very low share price at some point. However, a lot of penny stocks are bad investments. Problems like heavy dilution, large operating losses, and unproven management teams tend to dog all these companies. In the case of Castor Maritime (NASDAQ: CTRM ), all three of those issues certainly apply to CTRM stock.
Is Castor Maritime a fast growing company?
It made sense at the time. Castor is a tiny, fast-growing company with heavy short interest and a share price quoted in pennies. It checked the right boxes for a quick momentum trade.
Key Points
New contracts announced this week are at triple the rates of just last fall.
NASDAQ: CTRM
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What happened
Shares of shipping company Castor Maritime ( CTRM 2.58% ) are popping this week, and there are two logical reasons for it. At its peak the stock was up more than 33% during the week, and shares remained 18% above last week's closing price as of late Thursday afternoon.
So what
Castor Maritime operates a fleet of ocean-going vessels, most of which are dry bulk carriers. Once all recently acquired ships are delivered, Castor's fleet will consist of 27 vessels including 19 dry bulk carriers. The company sets charter rates based on the Baltic Dry Index (BDI), which itself has jumped 17% over the past week.
Now what
The three dry bulk carriers have been contracted at gross daily charter rates of between $30,250 and $32,000. As a comparison, one of those same ships had a daily charter rate of only $11,500 in October 2020.
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Is CTRM a penny stock?
CTRM is a penny stock and none of the analysts seem to be covering the stock. The stock’s rise this year has largely been fueled by the optimism about the company adding to its fleet. That said, despite the rise this year, CTRM trades below its IPO price.
Is CTRM stock undervalued?
Simply put, while CTRM stock is cheap (it trades below $1), it isn't undervalued. Sadly, in these markets, cheapness and valuation seem to be seen in a similar light. Many retail investors are running after penny stocks expecting to grab the next big thing.
