Who says shipping and logistics is a dull business? Anyone who in the investing community who thinks that is perhaps kicking themselves after Top Ships Inc. (NASDAQ: TOPS) exploded in trading on Thursday. The stock opened modestly at around 3.00 but didn’t stay that way for long. Before long volume levels had swelled well beyond 1M shares and TOPS doubled for a day high of 6.01. For sure there was some profit-taking and for a while many believed that TOPS would not recover from the low of 2.30. By the end of the day the stock had posted a rally of 850% to finish the day with over 3.62M shares – a figure which incidentally isn’t very far from the usual heavy volume on average of 3.43M shares that is the level set by TOPS over the last 30 days.
Where next? That’s the big question on the minds of investors. TOPS is down 99% on its DMA 200 and although the short term DMA 20 is up 722%, the medium term numbers for the DMA 50 is an anemic +10%.
YTD TOPS is still own 99%, although it has posted one-month numbers of +539% in terms of its ongoing performance with investors. The target price is a massive $750 which by any stretch is a big ask for a stock that is rising to $6 only to have those gains wiped out by the end of trading. Logistics might just be the only thing that gives investors long-term confidence in companies like TOPS.
On the upside investors can take comfort in the fact that TOPS has reached a high of 2520.00 and although valuation is 99% below that achievement, the stock has still managed to explode +1177% above the 52-week low of 0.18. Shipping is still a big factor for all investors as it shows what is going on with global trade. TOPS could figure in those conversations.