Tankers Needed for the Excess Oil

The strength in this position is mainly based on the increase in demand for oil storage amidst the oil crises. However, apart from the general surge in demand towards the oil storage sector, NYSE:NAT possesses multiple indications of growth, heath, and undervaluation. To start, NYSE:NAT does not have long term contracts for their fleet assignments that charge for storage capacity compared to their counterpart NYSE:DHT and thus can take advantage of the current opportunity and price higher for the increasingly scarce resource for oil storage. Subsequently, in previous years NAT paid minimal dividends due to their low earnings, but are projected to have dividends of $0.14 cents a share in May. This is a 10%+ return in itself and attractive even without the oil boost. Subsequently, their quick ratio is high, NYSE:NAT has much lower debt compared to DHT, and price to earnings ratio much lower than their relative peers. Given the nature of current economic conditions and their low debt, NYSE:NAT also has substantial untapped growth opportunities in the near future.

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jackfzhang

Apr 20, 2020
· POSITION CLOSED

7.60%

Position Return %

4.80

Price When Posted

0.37

Position Return

NAT

Nordic American Tankers Ltd

2.32

0.00
0.00%
Current Price

Tankers Needed for the Excess Oil

bullish
The strength in this position is mainly based on the increase in demand for oil storage amidst the oil crises. However, apart from the general surge in demand towards the oil storage sector, NYSE:NAT possesses multiple indications of growth, heath, and undervaluation. To start, NYSE:NAT does not have long term contracts for their fleet assignments that charge for storage capacity compared to their counterpart NYSE:DHT and thus can take advantage of the current opportunity and price higher for the increasingly scarce resource for oil storage. Subsequently, in previous years NAT paid minimal dividends due to their low earnings, but are projected to have dividends of $0.14 cents a share in May. This is a 10%+ return in itself and attractive even without the oil boost. Subsequently, their quick ratio is high, NYSE:NAT has much lower debt compared to DHT, and price to earnings ratio much lower than their relative peers. Given the nature of current economic conditions and their low debt, NYSE:NAT also has substantial untapped growth opportunities in the near future.
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read-time
1 min

9.00

Target Price

8/ 10

Confidence

1-2 Months

Timeframe
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Earnings Release
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News
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SEC Filing
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Sentiment
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Other Catalyst

NAT Channel

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