Letter from CEO-Nordic American Tanker
Nordic American Tanker (NAT: 30.19 -0.24 -0.79%) has released a letter from the CEO with an update on the fortunes of the company. As opposed to the letter in September, this one is of a positive note with little in the way of new news. The letter reiterated the company’s continued growth, with the fleet now at 14 double hull suezmax tankers (up from 3 in 2004). Also noted is some consolidation of operations and management.
The most interesting news was the trend of spot tanker (suezmax) rates so far for the 4th quarter:
- October: $17,160 per day
- November: $29, 921 per day
- December (thru 12/6): $68,013 per day!
NAT is a component of this site’s 20 Stock Portfolio primarily for income. The company is unique in the oil tanker world for its low expense structure, 100% spot market exposure and full dividend payout policy. The dividends fluctuate greatly, but the stock has yielded over 10% for 10 straight years. The share price of NAT is down 11% since October 1, and I think the stock is an excellent value at this time.
I currently do not hold any shares of NAT.
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