Shipping Stocks Explode After Korean Line Awarded Assets of Hanjin

Steve Kanaval  |

I looked at movers early this morning and noticed 7 of the top ten movers were shipping stocks. The sector had a move after the election moving higher following the rally in the Dry Bulk Index, which is the base underlying indicator for the sector. Trump in office sent this index sprinting higher and most of the sector had a nice rally. But another catalyst emerged sending the group to dizzying levels when Korean Line Corp was awarded Hanjin out of bankruptcy rescuing many holiday season items sitting in port.

If you don't know this story, the bankruptcy of Hanjin left many of the ships sitting in the harbor with a clock ticking. So problem solved for now and lets look at some valuations and see what makes sense in terms of future price action

These stocks are all up today:

Diana Containerships (DCIX) + 135%

Euroseas (ESEA) + 95%

Seaenergy Maratime (SHIP) + 72%

Dryships (DRYS) +68%

Globus Maratime (GLBS) + 57%

Ocean Power (OPTT) +57%

Top Ships (TOPS) +55%

Sino Global Shipping (SINO) +25%


I can't tell if this is short covering, but it is the culmination of buyers all squeezing through the same door. I am happy to walk anyone thru technical pull back levels in any of these names, but this will be volatile. This is no place for the weak of heart, but I can tell you there is a spot coming to short these stocks or take profits. You can email me directly at SteveK@equities.com and I can walk u thru the scenario I see for each stock.

As always Thank You for reading :)




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Companies

Symbol Name Price Change % Volume
DRYS DryShips Inc. 4.02 -0.06 -1.47 168,824 Trade
GLBS Globus Maritime Limited 2.34 -0.05 -2.09 66,936 Trade
OPTT Ocean Power Technologies Inc. 1.97 0.02 1.03 79,545 Trade
SINO Sino-Global Shipping America Ltd. 0.70 -0.05 -6.64 13,122 Trade
SHIP Seanergy Maritime Holdings Corp 0.66 0.02 3.13 1,276,668 Trade
ESEA Euroseas Ltd. 0.65 0.00 0.00 4,751 Trade
DCIX Performance Shipping Inc. 0.99 0.00 0.47 96,864 Trade
TOPS TOP Ships Inc. 0.50 0.02 3.09 2,397,856 Trade

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