Cyprus-based company Castor Maritime (NASDAQ:CTRM) was founded in 2017 and is known for shipping dry bulk goods internationally via its own vessels. Some traders like to flip CTRM stock for quick gains, evinced by the stock’s heavy daily trading volume.
It’s fine to trade the stock for the short term, but there are other possibilities. In fact, with some due diligence you might find that Castor Maritime deserves a place in your long-term portfolio.
A closer look at the company’s most recently reported financial data will reveal surprisingly strong year-over-year revenue growth. On top of that, recent fleet expansion activity should demonstrate that Castor Maritime is a shipper in hyper-growth mode.
Of course, we’ll also address the claim that this is little more than a Reddit stock. So, let’s begin our journey with a brief analysis of the stock’s technical features.
CTRM Stock at a Glance
CTRM stock currently trades at around $1.
This is noteworthy as $1 is a psychologically significant level for the bulls. Clearing that level with heavy trading volume, and keeping it there, should help the bulls move on to the $2 target price.
$2 is a reasonable objective, as the CTRM stock bulls made a run for that target not long ago. Specifically, on Feb. 11, they managed to bid the share price up to $1.95.
That was awfully close to $2, so hopefully the next push will be the big winner. The bull run in February was breathtakingly fast, so don’t be surprised if the stock propels higher when you least expect it.
A Potential Reddit Runner
As I’ve previously explained, CTRM stock has “all the signs of a Reddit stock.”
There’s no denying that the stock has been popular on the subreddit r/WallStreetBets. Plus, it’s heavily traded on the Robinhood platform.
Is it possible to buy the stock with the thesis that it’s a Reddit short squeeze candidate? Sure, but you don’t really have to rely on Redditors to inflate the share price.
Instead, you only need to examine the company’s fiscal data to be convinced that Castor Maritime shares are worth owning.
Castor’s most recently reported financial results cover the three months that ended on Sept. 30, 2020. During that time, the company generated $2.8 million in revenues. That’s a very impressive 133% improvement over the comparable year-ago period.
Plus, in terms of EBITDA, Castor generated $2.1 million during the nine months ending on Sept. 30, 2020. That signifies a 91% increase over the comparable period of the prior year.
Fast-Growing Fleet
Moreover, the company retains an excellent capital position as Castor reported cash and restricted cash of $38.1 million as of Sept. 30, 2020. That marks an astounding 654% increase over the company’s cash and restricted cash position at the end of 2019.
So yes, Castor Maritime is a potential Reddit runner, but there’s more to the company and the stock than that.
Several recent press releases illustrate the point that Castor’s in rapid growth mode – a positive sign as the company strives to expand its industry presence:
- On March 3, Castor Maritime took delivery of Japanese-built Kamsarmax dry bulk vessel M/V Magic Venus.
- Next, on March 10, the company entered into an agreement to take delivery of a 2010 Korean-built Kamsarmax dry bulk carrier from an unaffiliated third-party.
- Then, on March 12, Castor entered into another agreement, this time to purchase a 2011 Japanese-built Kamsarmax dry bulk carrier from an unaffiliated third-party; the company also announced that it took delivery of the 2005 Korean-built Aframax LR2 tanker called M/T Wonder Polaris.
The Takeaway
Some folks will insist that CTRM stock is just a short-term trading vehicle with short-squeeze potential.
You can certainly view the stock in this light, but there’s more to the story than that.
A deeper analysis should reveal that Castor Maritime is a shipper that’s growing its fleet quickly while maintaining a solid capital position.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.