Nordic American Tanker Shipping (NAT) Added to Recommend List
Nordic American Tanker Shipping (NAT) is our first stock added to our recommended dividend stock list. NAT has been added at $32.42 giving a current dividend rate of 10.6%. While the tanker market is currently in horrible shape (tanker spot rates continue to remain in a state of collapse, over supply of tankers being added to the market, and huge OPEC cuts currently in the market). We feel the bad news is all out and priced into the stock. With oil prices continuing to increase OPEC shouldn’t cut any more oil supplies, we feel the tanker market will start to improve in the next 12 months and removal of the single hull tankers in 2010 and an improving economy will be the drivers of this. With little to no long term debt, NAT has one of the lowest cash break-even levels in the business at a break-even level of less than $10,000 in costs per day per ship.
Tags: Dividend, NAT, oil tankers, OPEC, recommended stock, tanker rates