Castor Maritime (CTRM) Stock Slips Below $3: Should Sell Or Hold?
4:41 pm Friday, June 18th, 2021
The dry bulk shipping company Castor Maritime (NASDAQ:CTRM) has had a pretty rough time in the markets in recent time and although the wider market continues to rise, its stock has continued to be a disappointment for its investors.
However, amidst all this disappointment and declines in the stock price, it might also be a good idea for investors to figure out if the current levels of the Castor Stock could be a good opportunity for investors or not. The actions of retails investors from the Reddit community WallStreetBets proved to be the biggest reason why little-known Castor Maritime came into prominence this year.
Hence, Castor Maritime unwittingly became a part of the group of stocks that came to be known as ‘meme stock’ and recorded considerable gains for a certain period. However, that rally soon went cold and the stock went down in the process.
That said, it is important to point out that unlike many of the meme stocks, Castor Maritime actually has a viable business. Castor Maritime is involved in dry bulk shipping and is known for transporting all sorts of items starting from cement and scrap metals to iron ore to sugar among others.
Moreover, the demand for those goods appears to be rising. While that may be true, it is also important to keep in mind that unlike many of its meme stock peers, Castor Maritime has issued a lot of shares in order to raise more cash. To put it into perspective, the number of outstanding shares in the company soared from only 7 million last year to as many as 90 million as of this date.
That said, the company has continued to work towards growing its business and has acquired as many as 17 new vessels. However, at the same time, it is important to point out that investors could consider staying on the sidelines with regards to this stock over the coming days.
