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Traders and Investors,

As promised, tomorrow we have an exciting low float oversold NASDAQ play with a high short interest.

Get Seanergy Maritime Holdings Corp (SHIP) on your screen now and let's get down to business.

SHIP closed today at $0.66, after recently making a double bottom formation.

For those not familiar with this chart pattern, it essentially means that it makes a low, and then re-tests that low days or weeks later, and in this case, it held those lows and started to bounce.

The last time SHIP made a double bottom formation was back in March, after which it bounced 60% higher.

Now its made the same formation, and started to bounce already. If we see a similar move higher, this $0.66 could be trading at $1 in the coming days!!!

And the signs are positive.

SHIP has started its move higher, already climbing to $0.66 after testing $0.60 twice in recent days.

And the small float and high short interest are a trader's best friend in this case. If we see some momentum come in, I have no doubt that traders will jump on board and help push SHIP higher.


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The World Trade Organization (WTO) has projected that world merchandise trade growth is set to grow between 1.8% and 3.1% in 2017. This forecast growth rate could suggests increased volume, which could be beneficial for many companies.

With the potential growth in world trade, this translates to a potential growth in the shipping industry. Specifically, global trade growth should benefit the deep sea freight transportation industry.

In addition, the Baltic Dry Index has been trending higher, up as much as 50% at its highs in the past 12 months, providing an indication that deep sea transportation companies engaged in dry bulk shipping could potentially ride off the coattails of the potential increase in demand for these services.

SHIP is poised to benefit from this increased global economic activity.

Seanergy Maritime Holdings Corp (SHIP) is an international deep sea transportation shipping company primarily focused on providing marine drybulk transportation services. That in mind, SHIP owns and operates dry bulk vessels to do so. The company owns and operates a modern fleet of eleven dry bulk carriers, which consists of nine Capesizes and two Supramaxes, and its fleet has a combined cargo-carrying capacity of approximately 1,682,582 dwt. 

Recently SHIP announced its Q4 and full year financial results, which make for impressive reading. Here are some of the highlights mentioned in the press release...

• Net Revenues: $34.7 million in 2016, up 209% compared to $11.2 million in 2015
• Total Equity: $30.8 million in 2016, up 32% compared to $23.3 million in 2015
• Fleet growth: 1.5 million dwt in 2016, up 30% compared to 1.15 million dwt at end of 2015

Recent developments in 2017:

• Agreement to acquire another modern Capesize vessel, increasing fleet cargo-carry capacity to 1.7 million dwt
• Gain of $11.4 million upon closing of refinancing of existing loan facility
• Proactive covenant waivers and deferrals until second quarter of 2018

You can read more about its results and recent developments at their full press release.

And last week SHIP announced that on May 31, 2017 it took delivery of the M/V Partnership, a 179,213 dwt Capesize dry bulk vessel, built in 2012 by Hyundai in South Korea. The Company entered into the agreement to acquire the M/V Partnership in April 2017. The Company funded the gross purchase price of $32.65 million by a secured loan facility from a European bank and from financing arrangements with the Company's sponsor.


In Summary...

SHIP has an oversold chart that has just completed a double bottom formation. The last time SHIP had such a formation, it bounced 60% higher. 

With its small float and high short interest, we think a similar move higher is on the cards again.

And given its recent financial results the catalyst is there to support a bounce higher.

We think SHIP could be an excellent multi-day trade, make sure you do your research and be ready for the market open.
 

 

 

Remember our key trading rules when trading. Capital preservation is key. Keep your stops tight, and if things don't go your way, cut your losses and look for another opportunity.