- Shipping Demand – Demand for shipping has increased dramatically over the past couple of years. This has led to price increases, giving TOPS more of an opportunity to drive revenue from their fleet.
- Revenue – On the revenue side of the equation, we’ve seen some good new out of the company. The reality is that revenue growth has been relatively strong. In fact, when compared to other companies in the same sector, like Dianna Containerships (DCIX) revenue growth for TOPS seems to be as good as the sector can provide.
- Acquisitions – Finally, throughout the past couple of years, Top Ships has informed investors of several vessel acquisitions that already have binding contracts surrounding them. This ultimately will help to continue the strong revenue growth that we’ve seen from the company.
- Greek-owned shipping companies last year invested US$4.7 billion in the acquisition of used oceangoing vessels and another $4.7 billion in new builds. As a result, Greek shipping ranked top in transactions and among the biggest investors in new ships, with total investment exceeding $9.3 billion for almost 400 vessels, according to Clarksons shipbrokers.
The above amounts only concern published and confirmed agreements and they do not include any deals that remained private, market sources explain.
The strong recovery of the dry-bulk market and the mild growth in the container market, combined with attractive prices in the secondary market and even more alluring rates at shipyards led to a major increase in oceangoing ship investments last year.
Clarksons reported a historic high in used ship transactions last year as far as total capacity is concerned, which was 31 percent higher than 2016. The shipbrokerage’s data showed that used vessels with a combined capacity of 83.2 million deadweight tons (DWT) changed hands, most of which concerned Greek acquisitions and sales.
According to Allied Shipbroking, Greeks acquired 289 used oceangoing ships in the year to December 24, spending $4.64 billion, and sold 190 ships to others for $2.66 billion. Looking at the stock’s movement on the chart, Top Ships Inc. recorded a 52-week high of $2520.00. It is now trading 2519.22% off that level. The stock is trading $38.32 its 50-day moving average by 37.54%. The stock carved out a 52-week low down at $0.20.
Today, it’s clear that the bulls are winning the argument. Ultimately, Top Ships is finding its way toward the top and we can see a $100 per share if very short near future.