OceanPal Inc (NASDAQ: OP) stock price soared 127.6% during premarket trading on the second day after its shares started trading on the Nasdaq Capital Market following its spinoff from Diana Shipping.
The company was formed after Diana Shipping decided to create a new company to operate three of its older ships focusing on short-term charters in the bulk container shipping industry.
At the time, Diana shipping explained that the move would unlock more excellent shareholder value, which might be hard to believe for investors who are not familiar with how the shipping industry works. Still, it appears the move has paid off.’
OceanPals shares started trading on the NASDAQ at $3.56 per share but have since risen to trade at a high of $11.88 during premarket trading, although the stock had given up some of its gains at publishing.
Investor interest in the dry bulk shipping company has skyrocketed, given the supply chain bottlenecks that have dogged the global economy for most of this year due to the coronavirus pandemic.
It seems like OceanPal will have plenty of work in the coming months based on investor sentiment, but I would wait for its first earnings result to gauge the viability of its business as we head into a new calendar year.
Investors are also concerned about the impact of the omicron variant of COVID-19 that might hurt the travel industry. Luckily, the shipping industry has been spared the worst effects of the coronavirus pandemic in the past, and I expect this trend to continue.
I wouldn’t buy OceanPal shares at current prices simply because there is not enough information about the company and its business since it just debuted. Unfortunately, we also don’t have enough price data to make sound decisions.
*This is not investment advice. Always do your due diligence before making investment decisions.
OceanPal stock price.
OceanPal stock price surged 127.59% premarket to trade at $11.88, rising from Tuesday’s closing price of $5.22.
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