Much like the rest of the containership industry, DCIX stock has seen a boon following the election of Donald Trump to the presidency. The Baltic Dry Index has also seen itself shoot up since the results of the election came in on November 8.
Many other shipping stocks have seen their fortunes rise and fall since, with DCIX stock being one of the more stark examples of this wild roller coaster ride that the industry seems to be on.
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Before this steep drop, DCIX stock had risen over 1000% over a 72-hour span. While not quite to the level of DryShips Inc.‘s (NASDAQ:DRYS) extreme hike, 1000% is still nothing to scoff at.
The question is, when will the industry settle back down to more predictable numbers? While these gains are commendable, obviously they are also unsustainable, as evidenced by the market dumping DCIX stock today.
Having said that, the company did register gains of 11% in after-hours trading, once again fueling investor interest in the recently volatile stock.
Many of these shipping companies saw their best numbers years ago, and DCIX is no exception. Since opening at a value of $113.00 in 2011, the company has not once reached anywhere near that level of value, not even after these large surges. At the height of its most recent climb, DCIX stock topped around $18.00. It currently sits at $4.00.
Where investors need to look now is to the future. Is this a reliable stock worthy of keeping an eye on or is it bound to be an unpredictable stock with booms and busts for the near-term future? There’s money to be made in either event, but the scenarios demand drastically different mindsets while trading.
Ultimately, this industry will be worth keeping any eye on as a whole due to the Trump effect. That is to say, whether President Trump will be consistently beneficial to the industry is uncertain. His administration has not even assumed power yet and he is making a positive impact (at least at first), but you’ll have to look on further down the line to see if its a trend or an outlier.
