My question is: When will Cramer be back to hyping NAT? It IS going to happen.
NAT rises above 30;
Spot rates stay above 35K (Wild a$$ Guess);
the next 2ndary is close at hand.
Cramer has good observations on the market and various sectors. Do not trust his word on individual stocks. Do you own homework.
Have a look at the yearly cycle of NAT's PPS.
Long NAT for now, Mitch
Checkout future spot rates as well as an opinion about buying used tankers now:
This may be why Cramer says NAT is going nowhere!
This was never a stock one buys for its pricing increase. It is clearly a dividend alternative to bonds. Was the question asked in terms of a dividend play or stock appreciation. Right now he is convinced we are in a bull market - and so stock appreciation is where is head is at - for the moment. 3 months ago he was telling all bond holders to sell bonds and buy stocks such as NAT if they need dividend....
one problem is that NAT's div is constantly adjusted , not
steady like bonds or telecoms or pharma ..
also , from what i have seen , NAT is not using all of it's
ships and just took delivery on a new whizbang
i'd like to see it under 20 before i nibble, in the meantime,
it's more DD for me ..
i didn't do too well with shipping the 1st time i tried, about
5 yrs ago ....
it's interesting , but then so are US rails for much the
same reasons .. later .. garce
Cramer wants a lot in a dividend paying stock. He wants a good dividend but also growth in the underlying business. He said there are just too many tankers out there to keep day rates growing. He also wants a good balance sheet, good/appropriate earnings payout, good/appropriate cashflow payout and a well understood business model.
CYS is a great dividend stock. I bought at 12.91 and it has gone up since then. I am disappointed with the .25 dividend for NAT. I saw .60 as the dividend when I bought in. Waiting for it to go up to mid 28 and then I will sell and make a satisfactory profit. NAT did OK for a down dow day!
I can almost hear the "back up the truck" sound effect.
Although, I would like to see some increase in the dividend since all of the newly purchased ships were supposed to add to the dividend and support the stock price.
If you tend to be a contrarian to Cramer better find a better stock to think he is wrong about.... the fact is NAT had a history of doing secondaries in the mid $30s never giving the stock a chance to rise above so the smart money sold at $33-$34 at any given time over a year ago.
The smart money also knew that the number of new bulk ships coming off of Chinese manufacturing lines was going to create a depressing effect on bulk rates regardless of the state of the world economy.
Anyone that rode this down for the dividend forgot the core concept of total return. NAT was a ponzi in and of itself trying to create an impression of safety by doing 100% equity offerings and zero debt. In fact that was crushing NAT into the ground.