billf921

Day Rates Headed Higher at Nordic American Tanker

Michael if you like this sector, I suggest you look at TNP which trades at 38 and is worth 56. If Day Rates are Headed Higher at Nordic they also are headed higher for other tanker stocks. Tnp is the best that there is.

they have a different chartering approach, they lock in rates for 2 or 3 years and have a profit sharing if rates go up. It's less risky than nat but pays out less in dividends but stock buy backs is an indirect way of giving money back to shareholders.

The key is TNP assets are worth 56 per share and is trading at a discount at 38. It should be trading it 80 to equate to nats multiple

BUY TNP INSTEAD. Tops also should be considered but thats a story for another day

Day Rates Headed Higher at Nordic American Tanker

This company does have some exposure to the spot market as one of their 12 ships has fixed charges and the other eleven are market based income.

that is a pooly written sentance

nat has complete exposure to the spot market and pays out 100% of it cash flow. rates are now good..will they stay that way..who knows but they usually fall in the summer as we dont need as much oil to heat in the summer. Above 40 its a sell as its assets are worth only about 25 to 30 per share but alot of people chase the divident