Marine Petroleum Trust (MARPS) Stock News and Forecast: Why does it keep going up?

MARPS stock rises 32% on Friday and 69% on Monday.
MARPS stock is up another 78% in Tuesday's premarket session.
MARPS is a US royalty trust within the oil and gas sector.

Ivan Brian FXStreet

Marine Petroleum Trust stock remains high on the watch list of retail traders this morning as early gains in Tuesday's premarket see it add to impressive gains made on Friday and Monday.

Marine Petroleum Trust is a royalty trust with the purpose of providing payments from certain oil and natural gas leases in the Gulf of Mexico offshore of Louisiana. Approximately 60% of Marine’s royalty revenues come from oil and 40% come from natural gas. This is not an exploration company, so the funds are not being reinvested in looking for fresh wells. This is a depleting asset.

MARPS Stock News

The company release below gives a snapshot of its fortunes. It is not exactly a large-cap, and its performance is consistent with some of the small-cap energy stocks that were targeted yesterday by retail traders on the back of the spike at oil prices. The stock is a tiny one with a market cap of $24 million. However, that still makes it look overvalued given the revenue figures below. We do note that the average selling price for a barrel of oil was near $40 for MARPS in 2021, so there is room for significant upside. Even then it is a struggle to justify recent moves. Going back to 2019, the average price for oil was $66.85, but in 2019 MARPS stock ranged between $2 to $3 for most of the year.

Source: maps-marine.com

MARPS Stock Forecast

If you are trading this one, please know what it is and adjust your risk accordingly. This is momentum trading. This is not based on technicals or fundamentals in our view.

MARPS chart, daily

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Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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