Sino-Global Shipping America, Ltd. (NASDAQ: SINO)
Sino-Global Shipping America is having yet another incredible day in the market, following up on gains that we’ve seen on the stock over the past two trading sessions. Today, we’ll talk about why the stock is climbing, what we’re seeing in the market today, and what we’ll be watching for with regard to SINO ahead.
Why SINO Is Climbing
The truth is that Sino-Global Shipping isn’t the only stock in the shipping sector that’s been seeing such dramatic gains. In fact, the entire sector has been on an incredible bull run since Monday. The reason for the gains we’re seeing in the sector is relatively simple.
First and foremost, a big part of the gains is the Baltic Dry Index. This index is designed to track the shipping sector and demand within the sector. Lately, this index has been skyrocketing. In fact, just a couple of weeks ago, the index was below 800 points. Today, the index continues to climb and is now well over 1,000 points. This means that demand for shipping is climbing in a big way. Ultimately, increases in shipping demand are a big positive for SINO and the shipping industry as a whole.
Another major factor playing into the gains at the moment is the season that we’re in. Think about it, at the moment, we’re right smack dab in the middle of the holiday season. At the end of the day, shoppers are shopping their little hearts out at the moment. With more and more people shopping online, more and more shipments are going to need to take place. Considering the shift to online shopping among consumers, and the fact that it’s holiday season, we can bet that demand for shipping is likely to climb further. As a result, shipping companies like SINO see the benefit in the market.
What We’re Seeing From The Stock Today
As mentioned above, Sino-Global Shipping has been running up in the market for the past couple of trading sessions along with the rest of the shipping sector. Today is no different with the stock in triple digit gains. At the moment (11:29), SINO is trading at $5.86 per share after a gain of $3.44 per share or 142.15% thus far today.
What We Can Expect To See Moving Forward
Moving forward, things are looking great for SINO, at least in the short term. At the end of the day, increased demand in the shipping sector is great for any shipping stock. However, it’s starting to look like a bubble is forming. I mean, DRYS gained 1,500% in 2 days, Sino-Global Shipping and others in the industry really aren’t that far off. Earlier today, Wells Fargo put out a warning saying that the run would be short lived.
With all of that said, if you’re playing this run, keep the risks in mind. Also, keep a close eye on the Baltic Dry Index. Just like the gains in the index causing gains in SINO and other shipping stocks, declines in the index could cause the exact opposite.
What Do You Think?
Where do you think SINO is headed moving forward? Join the discussion in the comments below!