In February Castor Maritime (NASDAQ:CTRM at https://www.webull.com/quote/nasdaq-ctrm) grew 61%. It increased by 336 percent in 2021, but by 7 percent in the past month. The owner of 14 ships has stolen Reddit investors’ imagination everywhere. The seafarers are in the process of exploding volumes when Covid-19 comes to a conclusion.
A containership with Panama flag, the Ever Given, has been strewn by the waterway, which has stopped ships from crossing one of the busiest shipping routes in the world. There were somewhere over 150 vessels sailing to the Indian Ocean or the Mediterranean, waiting to travel through the channel. According to the Lloyd’s List shipping journal, last week a huge traffic jam that made the Los Angeles pre-Covid road appear like a stroll in the park was expected to be passing $27 billion.
The fortunes of shipping firms have always been a dent. And to learn about the bad luck that shipping stocks will afflict.
If you are not scared by channel traffic jams and bribery issues, imagine how the “Buy American” initiative of President Biden would impact shipping firms. In addition, add to the worldwide urge to switch to renewable energy supported ships, which would leave any pent-up ships such as (NASDAQ: CTRM) flush with cash after Covid-19.
You need the scale and size to withstand all sorts of economic calamities in order to excel in shipping. Ships aren’t inexpensive. If interest rates return, the industry will see a number of bankruptcies as in 2009, when the economic slump triggered by the financial crisis cost the carriers $20 billion.
Maritime Castor booth?
The company has purchased vessels almost regularly since the company announced its Q3 performance on 11 November. A total of seven press reports have been published on the basis of vessel purchases since 1 January.It communicates the amount of debt or equity that is earned because it’s not about procurement.
However, an increase in debt and financial expenses, and the net performance, down from a profit of 560,801$ a year ago, is almost 1 million dollars.The average unpaid debt of Castor during Q3 amounted to $19.3 million, up from $1.5 million a year ago. The debt’s weighted interest rate is 5.4%. That’s not bad if you remember Apple NASDAQ:AAPL sold 2,8 percent worth $1.75 billion in bonds that don’t matured until 2061 in February.
In January, Castor closed the $15.3 million loan facility with a 3.3 percent plus LIBOR interest rate, maturing in 2025. You’ll buy more boats with the money.Castor Maritime’s (NASDAQ: CTRM) final game is other than to purchase as many boats as possible as soon as possible and to pray to Heaven that the interest rates are not high enough that the cash flow will be produced to pay the loans. Before investing, you can check other stocks like nasdaq ocgn at https://www.webull.com/quote/nasdaq-ocgn.