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Tag: NASDAQ: CTRM

  • Castor Maritime Inc. (CTRM) stock declines in the pre-market session. Let’s find out why?

    Castor Maritime Inc. (CTRM) stock declines in the pre-market session. Let’s find out why?

    Castor Maritime Inc. (CTRM) stock plunged by 3.02% at the last trading close while the CTRM stock continued to decline by 4.34% in the pre-market trading. The decline in CTRM stock is not followed by any recent news. Castor Maritime is a well-known company that provides shipping transportation services on an international level through its ownership of oceangoing cargo vessels.

    Recent Development.

    On March 30, 2021, Castor Maritime announced its fourth quarter and full year 2020 financial results which we will discuss below:

    Fourth Quarter and Full year 2020 Financial Results;

    • CTRM stock has generated net revenue of $4.4 million for the fourth quarter 2020 and $12.5 million for the full year compared to $2.8 million for the fourth quarter 2019 and $6.0 million for the year 2019. This is an increase of 57% and 108% in the fourth quarter and full year 2020, respectively.
    • Net loss calculated for the fourth quarter 2020 was $0.8 million compared to net income of $0.5 million for the three months ended on December 31, 2019. Whereas the net loss for the full year 2020 was $1.8 million that includes one off non-cash interest expenses of $1.1 million while the net income for the previous year was $1.1 million.
    • The estimated EBITDA of CTRM stock for the three months ended December 31, 2020, was $0.3 million, relative to $1.1 million for the three months ended December 31, 2019, a 73 percent decrease from the previous year. EBITDA was $2.3 million for the year ended December 31, 2020, compared to $2.2 million for the year ended December 31, 2019, a 5% rise from the previous year.

    Conclusion

    For Castor Maritime and many other companies, the COVID-19 pandemic has caused a lot of hurdles and is still causing havoc in the shipping industry, especially in the tanker and dry bulk industries. Despite signs of progress in the dry bulk charter market from the low rates seen in the first half of 2020 even then the tanker charter market remains depressed. Tanker charter prices are expected to remain unstable in the near term as well.

  • Why Castor Maritime (CTRM) Stock Is Falling Today

    Why Castor Maritime (CTRM) Stock Is Falling Today

    The dry bulk vessels-focused marine shipping company Castor Maritime Inc. (CTRM) has seen its stock price falling -10.35% to $0.350 in the premarket session today and in the early minutes of the regular session, the loss has been declined to -8.71% with price buoying around $0.3565.

    Investors were left wondering what to make of the decline as no company-specific news was released.

    What is it that is dragging the stock down?

    Castor Maritime is a small-cap shipping firm that specializes in the ownership of dry bulk vessels for international shipping transportation. The company’s vessels are employed to transport dry bulk cargo, as well as other commodities including coal, grains, and other materials, along global shipping routes on short- to medium- term charters.

    Castor reported last Wednesday that it had entered into a contract to buy a 2006 Japan-built Capesize dry bulk vessel from an unassociated third-party vendor for an appraised value of $17.5 million through a separate wholly-owned subsidiary.

    The transaction is estimated to be concluded by the arrival of the vessel sometime at the end of the quarter or the early part of the second quarter of this year after the conclusion of its planned dry boarding and specialized inspection, which also includes the development of a ballast water treatment facility, and is conditional to some conformity with the provisions of completion. The Company’s fleet will consist of seven dry bulk carriers upon completion of this acquisition.

    Additionally, Castor Maritime also reported last Friday that it had closed a senior debt facility of $15.3 million with a respected European bank secured by two of its vessels. The funds are scheduled to be disbursed by the end of this week. The company intended to use the net proceeds of the financing to fund its expansion plans.

    Both of the news served as a trigger for the stock price of the firm to raise in the final two sessions of the last week, after which it became a victim of profit-taking at the start of the current week.

    Conclusion:

    With its high volatility of more than 17% and given the small price, Castor Maritime Inc (CTRM) stock is likely to be settling at the level prior to those news.