Our Stock of the Week is Nordic American Tanker (NAT). NAT is an oil transportation firm with a fleet of around two dozen crude oil tanker ships. The company calls itself a “Dividend Company” with the stated goal of to maximize dividends. Last quarter, it paid a dividend of $0.15. Its most recent leases, all to major oil companies, are in the range of $40,000 to $70,000 per day. The NAT operating costs are about $9,000 per day per ship, so cash flow for dividends should remain robust.
Management is very supportive of the stock, with the founder and CEO buying 50,000 additional shares in August at $4.08, bringing his holdings to 4,250,659 shares.
Earnings for the third quarter are due to be announced on Monday, November 27.
Technically, the stock has pulled back recently due to a drop in oil prices, but that will have no impact on the current charters that are in place. If conflict in the Middle East continues, that should provide support.
The stock bounced off support at around $4.30, and we are looking for some positive anticipation in its earnings next week. As always, we will not chase the stock on Monday morning but will look to trade it aggressively into volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in NAT. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
