Torm Plc (TRMD) Moving Like A Penny Stock; Why Is It Up 540%?

Torm Plc (TRMD) Stock Has Exploded On Tuesday But Why?

This week has already been a wild one and as many penny stocks that have broken out, we’ve started to see large caps feel the heat too. If you remember, not that long ago we stumbled upon Liberty TripAdvisor (LTRPB Stock Report), which was a penny stock that ended up running to over $100 a share. See: Penny Stock Liberty TripAdvisor Climbed 2,871% In A Day; How?

Looking back at LTRPB stock today, while it’s still up nearly 6x what it was at the start of April 15th, it’s now dropped by nearly $100 from the high. Low float penny stocks tend to do this. But when you see stocks above $5 running hundreds of percentage points, you can’t ignore at least taking a look.

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To give a little background on some speculation here, what is Torm Plc (TRMD Stock Report)? Unless you’ve been living under a rock, you know that the oil and gas industry is getting hammered this week.

Not in the sense of what many are doing in quarantine but more literally getting pounded by selling. On Monday we even saw WTI drop below $0 and that’s a first in history. Troubles have risen thanks to high supply, low demand, and continued output. At the end of the day, we’re running out of places to store this oil.

TRMD Stock Jumps Over 540%

As was discussed yesterday in the article: Best Penny Stocks To Watch As WTI Crude Prices Crater, shipping stocks were getting a lot of attention. We mentioned both Top Ships (TOPS Stock Report) and (NAT Stock Report). Both jumped even higher before the bell, earlier this morning. Even larger-cap shipping stocks like Scorpio Tankers (STNG Stock Report) have seen a boost in trading action. While both of those penny stocks pulled back, TRMD stock has exploded the same way we’ve seen low-float penny stocks jump. But as many are already suggesting, caution could be the way to go right now.

Furthermore, the difference is that TRMD stock isn’t a penny stock and the last time it was, it traded around $4.40 in October of 2018. The float on the stock isn’t particularly “low” by any stretch of the definition. But a wild trading day has already ensued. Shares have jumped from a close of $7.60 on April 20th to lunchtime highs of $48.86 on the 21st. This move of more than 540% comes without any news or filings to speak of. TRMD stock has been halted aa number of times already as the stock makes an attempt at new highs.

But back to the question, what is Torm Plc? The company is a Denmark-based company that owns and operates product tankers. The company transports clean petroleum products including gasoline, jet fuel, naphtha, and diesel oil, as well as other clean products. So basing this on the same argument in the oil and gas article yesterday, TRMD stock could fall into the “shippers” category. But does this mean that it should have jumped over 400% in a day? Feel free to comment below.

No News For TRMD Stock But…

A closer look at the filings shows a few recent activities in April. While none have come up this week, the last filing shows that DW Partners, LP held a 3.92% stake in the company. Prior to this an earlier filing showed Oaktree Capital Group Holdings GP, LLC held 66.27% stake in TRMD stock. Does this justify the move it saw this week?

There also has been no previous volume suggesting any type of rumors circulating, in my opinion. If you remember when FitBit (FIT Stock Report) was rumored to be sought out by Google, trading volume picked up before the actual confirmation of the deal. In this case, TRMD stock barely trades. Yet as of the lunch hour, over 190,000 shares have traded hands.

Will TRMD Stock Move Higher From Here Or Is The Party Over?

While TRMD has acted like a penny stock, there’s no getting around the fact that it started as a stock under $10. What do you think about TRMD? Will shares mimic that of LTRPB from before, keep heading higher until topping out over 100$? Or is the party over?

There’s something to be said about oil tanker stocks right now. With a window of opportunity where storage space is scarce on land, some are looking to floating storage. This, of course, could drive up prices in that segment of the shipping industry.

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Furthermore, Reuters reports that freight rates for “Very Large Crude Carriers” along the Middle East Gulf to China route were assessed at about $180,000 a day. That was toward the end of March. That was up from a daily rate of $90,000 earlier in the month. If these rates can be sustained, will that make for a strong case in favor of these kinds of shipping stocks? Leave a comment below and let us know your thoughts on TRMD stock. With no news, filings, and simple speculation apparent, is it on your list of stocks to watch or are you avoiding it?