It is not every day that a textbook example of a short squeeze presents itself as clearly as it has for TORO Corp (Nasdaq: TORO). TORO recently announced an extremely significant sale that would assist it in cutting expenses and will provide it with a sizable sum of cash, which will assist it in renewing its fleet. Meanwhile, TORO stock’s float is extremely low, and its short data is high. As is, TORO stock is gaining renewed interest following its recent sale which might see the stock continue running over the course of this week.
TORO Fundamentals
TORO stock is currently experiencing a short squeeze due to TORO’s announcement concerning its efforts to renew its fleet. As a result, it ran 100% due to bullish sentiment which was assisted by its low float of only 949 thousand shares. That said, its recent announcement of a major sale is attracting new investors which might send the stock on another run as more and more investors are taking notice of TORO stock. With this in mind, TORO has a short interest of 65% and 77% of its float is on loan, combined with its extremely low float, TORO stock could be shaping to be one of this week’s biggest winners.
A company acquiring its market cap’s worth in a single sale is not an everyday occurrence, which is why TORO’s sale was very notable. TORO sold two Tankers, the M/T Wonder Polaris, and the M/T Wonder Bellatrix for $71 million, which is equivalent to its market cap. The reason this deal is impressive is because it means that TORO sold the 2 tankers for nearly the company’s market cap which shows that TORO stock could be extremely undervalued at the current PPS. Furthermore, this move is also significant because it is part of TORO’s larger plan to renew its fleet.
Renewing a fleet is cause for celebration, which is why the short squeeze occurred in response to that announcement. By renewing a fleet a company is likely going to increase its capacity for transport and gain sturdier vessels for travel. TORO’s plan to renew its vessels includes the aforementioned deal as well as the sale of M/T Wonder Avior for $30 million. Those two deals provide TORO with $110 million in cash which is more than enough for it to fulfill its purchasing agreement, which consists of acquiring 3 2015 Japanese-built 5,000 cbm LPG vessels and 1 2020 Japanese-built 5,000 cbm LPG vessel from a third party for $70 million.
These vessels will be delivered in Q2 and Q3 and will allow TORO to diversify its revenue and fleet by entering the LPG shipping market. That is significant because the LPG market is projected to grow at a CAGR of 6.5%, therefore, reaching a market size of about 243 billion by 2030. That being said, TORO might be eyeing more deals in order to further diversify its fleet.
TORO Financials
According to its 2022 annual report, TORO’s total assets increased from $124 million in 2021 to $157 million in 2022. Its liabilities, on the other hand, decreased from $20 million to $17 million.
Its vessel revenue substantially increased from $29 million in 2021, to $111 million, which is partially due to the COVID-19 Pandemic. On the other hand, its expenses increased from $29.9 million to $60 million. Due to COVID and other factors, TORO went from having a net loss of $1.4 million to a net income of $49.9 million.
Technical Analysis
TORO is in a bullish trend and is trading in an upward channel above the 200 MA. It is currently above its 50 MA and is testing the 21 MA as support. The RSI is neutral at 51, and the MACD is also neutral. With the stock trading near the lower trend line, TORO could be setting up for the second leg of its run thanks to the growing bullish sentiment surrounding the stock.
As for the fundamentals, TORO stock is a prime short squeeze candidate considering its extremely high short data. Given that TORO could be undervalued at the current PPS following the recent sale, the stock could further squeeze which makes an entry near the lower trendline support an attractive level for bullish investors.
TORO Forecast
TORO’s bullish run cooled down, only to be catalyzed by news of a sale. TORO acquired capital equivalent to its market cap at the price of only two ships. Given the significance of the catalyst and the elevated levels of its short data, TORO stock could run more vigorously due to the bullish sentiment provided by the company’s plan to diversify its fleet.
TORO Fundamentals
TORO stock is currently experiencing a short squeeze due to TORO’s announcement concerning its efforts to renew its fleet. As a result, it ran 100% due to bullish sentiment which was assisted by its low float of only 949 thousand shares. That said, its recent announcement of a major sale is attracting new investors which might send the stock on another run as more and more investors are taking notice of TORO stock. With this in mind, TORO has a short interest of 65% and 77% of its float is on loan, combined with its extremely low float, TORO stock could be shaping to be one of this week’s biggest winners.
A company acquiring its market cap’s worth in a single sale is not an everyday occurrence, which is why TORO’s sale was very notable. TORO sold two Tankers, the M/T Wonder Polaris, and the M/T Wonder Bellatrix for $71 million, which is equivalent to its market cap. The reason this deal is impressive is because it means that TORO sold the 2 tankers for nearly the company’s market cap which shows that TORO stock could be extremely undervalued at the current PPS. Furthermore, this move is also significant because it is part of TORO’s larger plan to renew its fleet.
Renewing a fleet is cause for celebration, which is why the short squeeze occurred in response to that announcement. By renewing a fleet a company is likely going to increase its capacity for transport and gain sturdier vessels for travel. TORO’s plan to renew its vessels includes the aforementioned deal as well as the sale of M/T Wonder Avior for $30 million. Those two deals provide TORO with $110 million in cash which is more than enough for it to fulfill its purchasing agreement, which consists of acquiring 3 2015 Japanese-built 5,000 cbm LPG vessels and 1 2020 Japanese-built 5,000 cbm LPG vessel from a third party for $70 million.
These vessels will be delivered in Q2 and Q3 and will allow TORO to diversify its revenue and fleet by entering the LPG shipping market. That is significant because the LPG market is projected to grow at a CAGR of 6.5%, therefore, reaching a market size of about 243 billion by 2030. That being said, TORO might be eyeing more deals in order to further diversify its fleet.
TORO Financials
According to its 2022 annual report, TORO’s total assets increased from $124 million in 2021 to $157 million in 2022. Its liabilities, on the other hand, decreased from $20 million to $17 million.
Its vessel revenue substantially increased from $29 million in 2021, to $111 million, which is partially due to the COVID-19 Pandemic. On the other hand, its expenses increased from $29.9 million to $60 million. Due to COVID and other factors, TORO went from having a net loss of $1.4 million to a net income of $49.9 million.
Technical Analysis
TORO is in a bullish trend and is trading in an upward channel above the 200 MA. It is currently above its 50 MA and is testing the 21 MA as support. The RSI is neutral at 51, and the MACD is also neutral. With the stock trading near the lower trend line, TORO could be setting up for the second leg of its run thanks to the growing bullish sentiment surrounding the stock.
As for the fundamentals, TORO stock is a prime short squeeze candidate considering its extremely high short data. Given that TORO could be undervalued at the current PPS following the recent sale, the stock could further squeeze which makes an entry near the lower trendline support an attractive level for bullish investors.
TORO Forecast
TORO’s bullish run cooled down, only to be catalyzed by news of a sale. TORO acquired capital equivalent to its market cap at the price of only two ships. Given the significance of the catalyst and the elevated levels of its short data, TORO stock could run more vigorously due to the bullish sentiment provided by the company’s plan to diversify its fleet.