- Mermaid Maritime is in a strong uptrend, breaking key resistance levels.
- Solid fundamentals back the rally—strong demand, big order book, and undervaluation.
- Trump’s energy policies could be a growth catalyst, supporting long-term gains.
If you’ve ever watched a small boat pick up speed as it catches a strong current, you know the feeling of momentum kicking in. That’s exactly what’s happening with Mermaid Maritime (SGX: DU4) right now.
The stock has broken out of a major technical resistance, forming a strong uptrend. Investors are piling in, pushing the price up nearly 12% recently, with volume surging. But what’s really behind this rally? And more importantly—is this just the beginning?
Let’s break it down.
1. Strong Technical Setup: A Classic Breakout
Mermaid Maritime has broken out of a small consolidative range with a strong bullish bar, confirming its bullish continuation. Key indicators—including Ichimoku, MACD, Stochastic, and ROC—all point to sustained upside.
You can read the full technical analysis here:
2. Fundamentals Catching Up to Technicals
Mermaid rally isn’t just a technical play—it’s backed by solid business performance:
- Revenue Boom: Strong demand for its subsea inspection, repair, and maintenance (IRM) services.
- Earnings Growth: Improved profitability, reflecting operational efficiency.
- Massive Order Book: US$814 million in contracts, with potential new deals in the Middle East and West Africa.
- Undervalued vs. Peers: The company is trading at a discount to global offshore service providers.
Translation? The fundamentals are catching up to the stock price, justifying the rally.
3. Trump’s Energy Policy: A Surprise Tailwind?
One unexpected factor boosting offshore energy stocks? Donald Trump’s pro-oil stance.
His administration is:
- Expanding offshore drilling: More projects mean higher demand for Mermaid’s services.
- Rolling back regulations: Easier and faster approvals for offshore projects.
- Trade tariffs: Could impact supply chains, but so far, the benefits outweigh the risks for oil & gas players.
For Mermaid Maritime, Trump’s policies could mean more contracts and long-term growth.
4. What’s Next? Is It Too Late to Buy?
If you’re wondering, “Did I miss the boat?”—not necessarily.
Our technical analysts highlighted some of these key detail in his technical report:
- If the stock holds above S$0.16, the uptrend remains intact.
- S$0.20-S$0.25 is the next upside target.
- S$0.30 is possible if momentum stays strong.
Final Takeaway: Mermaid Maritime is seeing a perfect storm of technical strength, fundamental improvements, and macro tailwinds.
For investors looking for a high-growth, undervalued stock with strong momentum, this might be one of the best maritime plays right now.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
