Top Ships stock was flying high on Monday, but not due to anything the company has announced.
Instead, the reason for the increase to Top Ships (NASDAQ:TOPS) stock likely has to do with a change in position from the U.S. government. The Trump Administration has announced that the U.S. is planning to leave the Universal Postal Union.
The Universal Postal Union is a treaty that has been in place for 144 years. The goal of this treaty is to keep the prices of shipping down between countries that take part in it. With the U.S. leaving the treaty, it opens the door for shipping prices to increase.
That is good news for Top Ships stock. It gives the company the chance to pull in more revenue from shipping. This in turn has resulted in a massive interest in the stock from investors looking to benefit from these changes, reports CNA Finance.
It is also worth noting that Top Ships may be volatile over the next few days thanks to the current stake of its stock. Investors looking to short shares of the stock would likely be behind these possible fluctuations.
It isn’t just Top Ships stock that is up on the news, either. Diana Containerships (NASDAQ:DCIX) and DryShips (NASDAQ:DRYS) are also among the shipping companies that are seeing massive boosts to their stocks. Granted, neither of them is seeing near as much of an increase as what TOPS stock is.
TOPS stock was up 72%, DCIX stock was up 25% and DRYS stock was up 12% as of Monday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.