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Boston Carriers Inc (OTCMKTS:BSTN) Set To Climb Higher

Boston Carriers Inc (OTCMKTS:BSTN) Set To Climb Higher
Written by
Jarrod Wesson
Published on
December 19, 2017
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Our readers should remember well our article about Boston Carriers Inc. (OTCMKTS:BSTN), the international shipping company. We said that the business was expanding and it was widely expected that interest in the stock would grow as the market becomes more aware of its potential.We were not wrong in saying so.Great developments were released recently including a new spot voyage contract to transport approximately 44,000 tons of dry bulk cargo in between Middle Eastern ports.But, there is more.We saw that many market participants are acquiring BSTN shares, which shows that the demand for the stock is increasing. As per Microeconomic theory, the increases in demand should be followed by increases in the prices.Have a look at the following stock chart and note how the share price, trading below $0.01, spiked to more than $0.02. In addition, please note the large amount of shares that changed hands recently. The company has been seeing volumes higher than 10 million some days, which shows that the interest in the stock is increasing: 1 month chart for BSTNLet's revisit the activities of BSTN for those who are getting to know the company here. Boston Carriers Inc. is focused on providing solutions for seaborne transportation of dry bulk commodities through owned vessels. These people seem to know very well this industry, as the company was created on July 31, 2001. It is headquartered in Athens, Greece. The list of commodities transported is large; dry and liquid, such as container cargo, non-container cargo, crude oil, refined petroleum products, vegetables oils, gases, and chemicals.Recent Developments - The new contractOn November 29, 2017, the company released that during November 2017, Nikiforos completed a spot voyage contract to transport approximately 44,000 tons of dry bulk cargo in between Middle Eastern ports. We believe that this news excited the market participants. The share price seemed to spike up from $0.01 share price resistance to touch the level of $0.02.The contract contributed approximately $503,000 in the revenues of BSTN.That's not all.The operating revenues that are being reported in 2017 are approximately $3.7 million compared to approximately $2.1 million for the year ended on December 31, 2016.In addition, the directors of the company expect the industry to keep this growth pace. Mr. Antonios Bertsos, Chairman and Chief Executive Officer, noted the following:

"We believe in the dry bulk sector and will attempt to continue to grow our fleet with additional dry bulk Handysize-Handymax vessels." Source

In our opinion, the expected growth and the fact that the company is very well positioned to profit from it are the reasons to explain why market participants are acquiring stakes in the company right now.Market Participants and Short SellersHave a look at the short interest in the following table. Remark that it is decreasing as the company releases good news. Short sellers are closing positions once they see that the share price is increasing pushed by the growth of the company. It is a very beneficial news.DateShort Interest% ChangeAvg. Daily Share VolumeDays to CoverSplitNew IssueNov 15, 20179,138100.009,232,5451.00NoNoSept 15, 201756,967100.001,375,5411.00NoNoSourceBut, that's not all.Other market market participants are purchasing stakes in the company. We had access to company materials showing that the following amount of shares has been disclosed by market participants at the end of November:1.Title of Security(Instr. 3)2. Trans. Date2A. Deemed Execution Date, if any3. Trans. Code(Instr. 8)4. Securities Acquired (A) or Disposed of (D)(Instr. 3, 4 and 5)5. Amount of Securities Beneficially Owned Following Reported Transaction(s)(Instr. 3 and 4)6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)7. Nature of Indirect Beneficial Ownership (Instr. 4)CodeVAmount(A) or (D)PriceCommon stock 11/22/2017 11/22/2017 P 20000 A$.015 325000 D Common stock 11/27/2017 11/27/2017 P 175000 A$.0139 500000 D Additionally, on December 7, 2017, somebody acquired 238,000 shares, which represents 7.78% of the company.We believe that demand is undoubtedly increasing in this stock. It seems like a very hot stock at this point in time.Revenue Increase Revenue Increase - Boston Carriers Inc OTCMKTS:BSTNThe most interesting factor in the financial situation of the company is the increase in revenues. It is true that the net income is not positive yet, but, in our opinion, if this revenue growth continues, we expect the profits to finally show up. If this happens, it will be very good for the company, as it will be able to refinance its balance sheet, which should be largely appreciated by the market.ConclusionBSTN is an interesting story among small caps. We appreciate the strategic direction of the company and the fact that the industry is growing at a high pace. Additionally, we see opportunities in this stock, as the new announcements and the new acquisition of stakes are moving the share price up. Be sure to check out our coverage on BSTN!We will be updating our subscribers as soon as we know more. For the latest updates on BSTN, sign up below!Disclosure: We have no position in BSTN and have not been compensated for this article.Image courtesy of William Murphy via Flickr

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