What’s up investors, the recent commodities boom has sent bulk
shipping costs to decade highs.
The Rates for ships carrying commodities that fuel global industries and keep the world
fed have soared, raising hopes of a turnaround in fortunes for the embattled dry bulk shipping
sector.
The Baltic Dry index, which tracks rates for the three largest classes of ships, has risen
to its highest level in more than a decade, soaring over 700 per cent since April 2020.
And so this soaring demand for raw materials as the world recovers is expected to help
transform the fortunes of dry bulk’s stocks.
So in this video, I’ll be sharing with you 2 solid dry bulk vessel penny stocks which
are well positioned to explode on the back of this demand..
So I will be sharing with you the company overview, their outlook and key risks for
you to consider whether to have it in your portfolio or your watchlist as you deem necessary.
So please make sure you stay through to the end as you don’t want to miss out on these
economy bell weather stocks which could be good inflation hedges for your portfolio.
Also be informed that this video is not financial advice and the markets are presently very
unfavourable to penny stocks lately.
So most penny stocks are risky based on current market conditions and the price targets are
over the medium to long term for the opportunity to materialise, so some patience would be
needed and only get in if you are comfortable with the risks and if the price is right for
you.
Welcome back and thank you for being here.
If you are new to my Channel, please subscribe and hit the bell as I always bring you the
hottest stock tips and always get straight to the point.
Also if you would like to support the channel and are looking for a good investment platform,
I recommend using Webull which is now trading crypto and are currently giving away two free
stocks worth over $1800 when you create an account.
And so if you don’t already have one, please click on the link in the description below
or pinned comment to sign up for a new account.
I would really appreciate it.
And if you enjoy this video, please make sure you give it a big thumbs up and let me know
your thoughts in the comments section below what copper mining stocks you currently hold
in your portfolio.
Thank you so much.
So with that said, let’s get straight into it and talk first of Castor Maritime
(CTRM) has a share price of 39cents and a market capitalization of $354m.
Its share price is down 14.2% in the last month but it up by over 181% over 6m and it
seems like there’s plenty more to be offered by this stock given the outlook of global
economies opening up.
This stock is Nasdaq Listed and has over 899mn shares outstanding with over 100m shares traded
over 90day period.
Since the stock first listed on the Nasdaq in February 2019, shares are down 91.6% overall
in just over two years.
In the past year alone, Castor’s share count has also exploded by more than 9,000%, including
the sale of 192.3 million shares in April.
The company has acquired 11 vessels so far in 2021 to build up its fleet, but investors
are paying a heavy price for those acquisitions.
A short squeeze sent the stock skyrocketing to as high as $1.95 in early February.
Since the dust has settled on the short squeeze, Castor shares are now back down to around
39 cents.
Castor Maritime is a growth-oriented global shipping company engaged in the seaborne transportation
of a wide range of commodities along worldwide shipping routes through their ownership of
dry bulk and tanker vessels.
The Company’s vessels are employed primarily on short to medium-term charters and transport
a range of dry bulk cargoes, including such commodities as coal, grain and other materials
along worldwide shipping routes.
Castor Mairitime has been on an acquisition spree to drive growth.. as you can see they’ve
been on a non-stop fast lane in raising funds and acquiring new vessels since October 2020.
“They acquired their seventh vessel in January 21 as they believed it was an opportune time
to move to larger dry bulk sizes, as they believed that it will attract benefits in
the current improving market.
In their latest acquisition in May 2021 they confirmed that they have continued to steadily
execute their expansion plan with the addition of another dry bulk vessel.
Upon completion of all their announced acquisitions, their fleet will consist of 24 vessels across
the dry bulk and tanker segments.
These purchases will increase CTRM’s operational capacity, which should increase its revenues
and earnings potential.
That is absolutely incredible growth of vessels growing from 7 in Janaury to 24 which is a
more than 3X growth in capacity which is huge in my view.
But let’s see what this has done to the finances and if they’ve got the stability
to sustain the execution.
In their latest results for 2020, they reported net Revenues of $12.5 million for the year
ended December 31, 2020, as compared to $6.0 million for 2019, or a 108% period to period
increase; They also had a Net loss of $1.8 million for 2020 compared to net income of
$1.1 million 2019;
So some very interesting results despite a despite a challenging 2020, which is a testament
to their dedication and the strength of their business.
So as the dry bulk shipping market steadily improves, and market participants expect a
robust rate environment throughout 2021, which, if it materializes, is expected to drive our
revenues higher.
On the back of this, Castor will also need to show investors that its fleet expansion
will help the company put up top- and bottom-line growth numbers that justify the massive dilution
the company has subjected them to in the past year.
So Investors could also anticipate a reverse stock split at some point so the stock can
maintain its Nasdaq listing.
So a very interesting outlook on this stock and so if you want to invest in any of this
stock, you want to strike in at a price which you like and that works for you.
So I’ll start by cost averaging in with a stop loss ideally in the range of 5 – 10%.
The share price seems to be on a steady descend, and I don’t think it has bottomed out yet...
So my strike price is in the range of 33 – 35 cents per share...
So if there’s any further pull back lower than 35cents that would be a good entry point
for the long term But please do your own research.
We can also see the potential of this stock pre-covid here where it traded at all time
highs of $6 per share.
Whilst that is to achieve given current operating conditions, I feel that given their additional
capacity and the economies opening up this stock could 10X over the medium to long term
at peak operating conditions.
This is ofcourse very dependent on the pace of the economies which means a high risky
bet but please do your own research.
Next up is Seanergy Maritime Holdings (SHIP) has a share price of 98cents and a market
capitalization of $152m.
Its share price is flat on the last month and up by over 98% over the last 6m.
This stock is Nasdaq Listed and has over 156mn shares outstanding with over 13.6m shares
traded over 90day period.
Seanergy Maritime Holdings Corp. is the only pure-play Capesize shipping company listed
in the US capital markets.
Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize
vessels.
Seanergy has Strong Relationships with Major Charterers and their diverse customer base
includes the world’s major miners and some of the largest traders and cargo operators
including BHP Billiton, Glencore, Vale, Anglo American and more
Seanergy has also been an acquisition spree.
It recently acquired their latest Capesize bulk carrier.
This was their thirteenth Capesize vessel and its immediate commencement of period employment,
during the strongest Capesize market of the last decade.
So an equally interesting outlook with this stock linked to the demand of bulk commodity
and so if you want to invest in any of this stock, you want to strike in at a price which
you like and that works for you.
The share price has been relatively flat over the last few months so my strike price is
in the range of 90 – 92cents per share..
So if there’s any further pull back lower than 92cents that would be a good entry point
for the long term.
And when you look at where this stock has come from over the past year, you can begin
to appreciate the impact of the pandemic on the stock and so as economies begin to open
up, there’s some optimism that they could get back to their previous highs which in
Seanergy’s case is over $4 per share or a 4X upside from current levels.
But that assumes pre-covid operations at their peak and in a profitable way.
So clearly in site but time would be required reach such levels assuming no further pandemic
drawbacks But please do your own research.
You need to be aware that this stock reviewed is a penny stocks which is very cyclical and
driven by global economic recovery and so it can be riskier and more volatile, so just
make sure you are planning for any trade accordingly and it falls within your risk tolerance..
This video is not a buy or sell recommendation but is meant to bring some new and exciting
companies to your attention for you to do your own research and due diligence on before
making an investment decision.
As always I love hearing from you guys so let me know your thoughts on this penny stock
in the comments section and what other penny stocks are catching your eyes lately.
If you are new to my channel please ensure to subscribe so I can share with you the latest
market insight and tips every week and hit the bell so you are notified when I upload
new videos.
If you would like to see more videos like this, check out this video right here or this
playlist right here to watch equally insightful content from the channel.
Coming up next are equally exciting videos on Penny Stocks.
So please make sure you hit the bell to be notified.
Thank you so much for being here and I look forward to have you in the next video.