Definitions vary amongst trading demographics, but most Wall Street players consider any company under $5.00 per share as a "penny stock." Running with that definition, if you're looking for penny stock movers on Thursday, it's shipping companies that are in play. Many shippers have been beaten down over recent years on global manufacturing weakness and a strong U.S. dollar that deters foreign buyers.
However, Donald Trump's surprise presidential victory in November provided a catalyst for the industry on optimism that the new president would make good on his promise to spark the economy. A large portion of Trump's campaign promises revolved around de-regulation and lower corporate taxes as a means of getting manufacturing back on track and creating jobs, which should support dry bulk shippers. As manufacturing rises, so does demand for basic materials, another plus for shippers.
Stocks in this industry can be highly volatile and often move in unison, such is happening today. Some top gainers about halfway through the trading session include Top Ships (NASDAQ:TOPS), which has rocketed ahead over 111%; Globus Maritime Ltd. (NASDAQ:GLBS), with a rise of 65.8%; and Sino-Global Shipping America Ltd. (NASDAQ:SINO), with a pop of 21.8%. None of these top gainers has any news releases helping power the stock ahead; it all appears to be momentum.
