STOCK PICK FOR: Friday, October 23, 2015
Nasdaq: SHIP
Seanergy Maritime Holdings Corp. (SHIP)
Attention Traders!
Let’s get ready for our new pick!
We’ve found an exciting NASDAQ alert that looks poised for what could be a big move in the sessions ahead.
Our new pick is a low-float, low-priced shipping-stock that recently posted strong revenues, and looks poised for a major resurgence.
Shipping stocks are beginning to see accumulation now after a period of being oversold due to the price of oil falling.
At current levels of .70 per share, this could be one of the most undervalued shipping-plays on the market.
Because of this…
We Are Issuing An Immediate Alert on Seanergy Maritime Holdings Corp. (SHIP)!
SHIP closed in the last session at just over .70 per share, and could prove to be extremely undervalued at current levels.
For years, a struggling global economy and slow-down in commodity growth led to poor performance and some of the lowest levels seen in recent history for shipping-stocks.
These historically low levels have in turn provided value-oriented investors with the perfect place to find undervalued names and high growth potential opportunities within a sector now poised to see a potential turn around moving forward.
An improving world economy, day rates and rising import and export demand are shoring up conditions for a shipping sector in high demand and now long ignored shipping names trading at historic lows are primed to see big growth in the coming months and years ahead, giving investors the perfect opportunity to take advantage of tailwinds within an undervalued sector.
SHIP is an international provider of marine dry bulk shipping services through the ownership and operation of dry bulk vessels.
After posting solid revenues of 1.8M-dollars in the 2nd Quarter of 2015, and a Total Equity of $9.4M as of June 30, 2015, SHIP CEO, Stamatis Tsantanis credited the company’s restored revenue-generation capacity to the acquisition of its first vessel, the M/V Leadership, in March of this year.
Tsantanis stated: “In the second quarter of 2015, Seanergy restored its revenue-generation capacity through the acquisition of its first vessel, the M/V Leadership, in March 20145. The Time Charter Equivalent (“TCE”) rate earned by M/V Leadership during Q2 of 2015 amounted to 9.8K-dollars, which compares very favorably with the average rate of the 4 T/C routes of the Baltic Capsize Index for the same period of 4.6K-dollars. Going forward, we expect our TCE rate to strengthen as the dry bulk market gradually recovers.”
Simply put, the addition of vessels increases the capacity for revenues, and it appears SHIP is doing exactly that, recently announcing that it has taken delivery of two additional ships, with plans to acquire three more by the end of next month.
Rapidly expanding its fleet, SHIP has greatly increased its revenue capacity and is positioning itself to see potentially massive revenue growth in 2015 and beyond.
Because of this we are urging all members to begin your research on SHIP right away and be ready for a potential breakout from current levels.
SHIP Announces Delivery of a Capesize and a Supramax Vessel
On October 21, 2015, SHIP announced that it took delivery of a 170,057 dwt Capesize dry bulk vessel, which has been renamed to M/V Geniuship, and a 56,884 dwt Supramax dry bulk vessel, which has been renamed to M/V Guardianship. Both the M/V Geniuship, which was built in 2010 by Sungdong SB, and the M/V Guardianship, which was built in 2011 by CSC Jinling Shipyard, will be employed in the spot market. The acquisition cost of the M/V Geniuship and the M/V Guardianship has been funded by senior secured loan agreements with international financial institutions and by a funding arrangement with the Company's sponsor.
As previously announced, the M/V Geniuship and the M/V Guardianship are the third and the fourth, respectively, of seven modern secondhand dry bulk vessels that the Company has agreed to acquire for a gross purchase price of approximately $183M. The acquisition of the remaining three vessels is expected to be completed by November 30, 2015.
Could SHIP be in for a Breakout?
It certainly looks that way, especially considering its massive growth potential in the near term and beyond.
Trading nearer to the lower end of its historic trading range, SHIP looks to have plenty of room for potential gains moving forward and with a 52 Week High of 1.50 per share, could prove to be well undervalued at current levels.
Since breaking past its 70-cent resistance level earlier this week on Monday, SHIP has continued to climb since. Reaching a high of 0.7249 per share before pulling back to close in the last session at 0.7049 per share, just above its recently established support levels of 0.69, SHIP looks poised to continue to chart an overlying upward trend into the sessions ahead.
With an extremely low float making it capable of rapid and significant movement to the upside, and with its planned acquisition of three additional vessels next month acting as a potentially huge catalyst, SHIP could be in for yet another major breakout rally very soon.
The global economy has continued to improve in recent years, but as the shipping industry tends to be a lagging indicator of global economic strength, it is just now moving into position to benefit from an expanding world economy.
So as improvement in the economy results in higher demand for transport, the number of transporters remain largely unchanged, meaning that as the demand for services of the available ships increase, so too do the prices shippers can charge.
With rates on the rise, the greater a company’s shipping capacity, the greater the company’s revenues. With the recent acquisition of two ships and three more acquisitions expected to be completed by November 30, 2015, SHIP is quickly expanding its fleet of shipping vessels making it primed to see significant potential increases in revenues through the year and into 2016.
SHIP is positioned to see strong growth through 2015 and beyond, and at current levels which still largely reflect an undervalued shipping industry, SHIP could prove to be an incredible value with immense upside in the near term.
We are urging all members to begin your research immediately and keep a close eye on SHIP today!
Do Not Miss SHIP: A Company Showing Incredible Value Given its Significant Upside Potential
Happy Trading,
Your Penny Pick Finders team.
