FreeSeas Inc. (NASDAQ:FREE) Jumps 45.30% On Release of Financials
Northern, WI 06/17/2013 (GDPInsider) – FreeSeas Inc. (NASDAQ:FREE) exploded in early morning trading on the strength of its earnings release. The stock opened at 0.38, a mere 0.01 cent above its previous close of 0.37, but a solid start nonetheless for what has become a blockbuster day. FREE has since established a trading range of 0.3520 and 0.6480, with market valuation moving sharply northwards. The stock is currently up 45.30% off strong volume of 1,841,252 million traded shares.
The massive influx of investors has pushed volume 251% above the average of 524,031 and FREE looks set to do more exciting things. Since June 14, 2013, the stock has increased 58.79% on its 52-week low of 0.34 and momentum looks strong.
FREE operates in the transportation of drybulk cargoes through the ownership and operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels. The company had a slight hiccup after it failed to comply with NASDAQ’s minimum closing bid of $1.00 but rebounded after it got confirmation from NASDAQ in February that it has 180 calendar days to regain compliance. That requirement was fulfilled and FREE received a confirmation letter outlining its compliance with Listing Rule 5450(a)(1) (the “Minimum Bid Price Rule”).
Since then investors have rekindled their interest in the company. FREE released its financials which showed total revenues to December 30, 2012 of $14.260 million with a cost of revenue for the said period of $2.835 million
Companies like FREE are heavily tied to the state of the economy and recent data suggests that the economic recovery may not be far off from hitting full steam. This will translate into greater demand for dry goods shipping and FREE could very well be in line for a bump in revenues.
FREE has a steady RSI of 45.01 and although the technical chart shows a southward trend, recent valuations is showing an uptrend. This uptrend could take FREE past its SMA50 of 0.84. FREE’s last resistance point was 0.47, which it has now gone past with recent breakouts in market valuation.
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