Letter from CEO-Nordic American Tanker

Posted by Tim

December 11, 2007

Nordic American Tanker (NAT: 35.78 +0.74 +2.11%) 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.