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Nordic American Tankers Limited (NAT)
NYSE - NYSE Delayed Price. Currency in USD
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#NAT; #EURN. I have never seen the Clarkson Platou SuezMax spot rates this low. They were like $1.6K a day early this morning when I checked. In fact they were so low that NAT has pulled them off their site where I have been following them weekly for at least six or seven years. Here is what they have posted instead.
"We now wish to comment periodically on the tanker market on our website. We will do that monthly or so. The reports we have had on the website so far, are giving a wrong picture of the situation for NAT. We wish to correct that picture and comment ourselves on the situation as we judge it. Our first comment on the tanker market by NAT will be in early November 2020. In the meantime if you have any questions, please contact us."
NAT is a long term hold for dividend investors.. This is a good time to average down with a few additional shares... NAT will be in business long after the short sellers are buried 6 feet underground.... GLTA longs...
This may help clarify NAT’s time-charter/spot exposure and the impact on Q3 and Q4 earnings.
From NATs 6-K Sept 2020
“The future minimum revenues as at June 30, 2020 related to time charter revenues are as follows
2020 30,301 Million
2021 7,317 Million
Future minimum revenues 37,618 Million”
Based on media reports NAT has one multi-year charter around 25K. According to Seasure NAT contracted four 6-month time-charters in April this year at approx 55K each. Allocating the 2020 revenue implies time-charter revenues for Q3 of 22.5 million, Q4 7.5 million. So it would appear all 6-month charters are finished by the end of October, with the one multi-year expiring in Q3 of 2021. Bottom line, NAT is currently 96 percent spot market exposed.
Are there any true stock holders left in this community and not just trash talkers?
I'm holding NAT since May (av. 4.96). -30%. I feel like I should leave before it gets worse, but at the same time I understand that this stock is undervalued on the books.
What are you opinion guys?
"The 3rd quarter produced solid results."
From their website
"We now wish to comment periodically on the tanker market on our website. We will do that monthly or so. Our first comment on the tanker market by NAT will be in early November 2020. The 3rd quarter produced solid results. In the meantime if you have any questions, please contact us."
I guess this is so cheap it's now considered a value play:
Ford Equity Research Buy (10/16/20)
ISS-EVA Buy (10/21/20)
Zacks Investment Research, Inc Neutral (10/21/20)
Refinitiv/Verus Buy (10/21/20)
Jefferson Research Neutral (10/16/20)
It’s a good investment if you buy it down here between 2.75-3.25 and you just hold it and collect the variable dividend. You need to understand that this is not a widows and orphan stock that will pay a stable dividend that rises with or slightly above the rate of inflation like a utility. It’s going to have its ups and downs and the dividend will rise and fall accordingly. When tanker rates are very high, the payout will rise accordingly. When rates plummet, the payout will decline. But if you hold when the price rises and you add to your holdings when the price falls, over time you will be earning a very nice payout. If you buy at 3:00 and sell at 9:00 you will have had a good gain on your investment. If you buy at 3.00 and sell at 2.80, well, I guess you didn’t have a great investment
We now wish to comment periodically on the tanker market on our website. We will do that monthly or so. Our first comment on the tanker market by NAT will be in early November 2020. The 3rd quarter produced solid results. In the meantime if you have any questions, please contact us.
Here is how Ocean Yield accurately describes the transaction - it's a sale.
Ocean Yield ASA has agreed to acquire two suezmax newbuilding tankers with 10-year bareboat charters to Nordic American Tankers Ltd (“NAT”). The net purchase price will be up to USD 44 million per vessel after seller's credits of minimum 20%.
The vessels are scheduled for delivery by the yard, Samsung Heavy Industries, South Korea, during the first half of 2022. NAT will have certain options to acquire or to sell the vessels during the charter period.
NAT is a crude tanker company listed on the New York Stock Exchange with a fleet of 25 Suezmax tankers, including these two newbuildings.
Nordic American Tankers Ltd (NYSE: NAT) – Full Financing of Two Newbuildings is in place
October 16, 2020
Dear Shareholders and Investors,
Further to our message of September 23, 2020, when NAT announced two Suezmax newbuilding contracts with Samsung Heavy Industries for delivery during the first half of 2022. We now wish to announce that NAT has entered into a financing agreement with a subsidiary of Ocean Yield ASA for the two vessels. It is an advantage to secure the long term financing for these two newbuildings at an early stage and with an existing lender.
The financing is for up to 80% of the newbuilding price. The agreements are based on a 10-year bareboat charter for each vessel. NAT has certain options to buy or sell the vessels during the charter period.
Ocean Yield ASA, a company in the Aker sphere, is listed on Oslo Stock Exchange (OSE). One objective of NAT is to become a debt free company.
Founder, Chairman & CEO
Nordic American Tankers Ltd.
This stock is so weird. Insiders are buying, going down, new ship purchases, going down, providing financement, going down. I wonder what can boost it. Maybe one of SpaceX rocket choose to land on them, that can make the stock price 5$
On the "Acquistion" of two new ships:
In the beginning, it appeared that the company planned to acquire the two ships directly from the shipyard with 20% down and future payment schedule agreed upon. Company was to work on financing on the remaining 80%.
Now, it appeared the company sold the ships to a bank and lease the ships back. The so called sale and lease back with option to buy the ships at a future specific time and price.
Why? My guess is finding financing for the 2 ships is not that easy.
Sale and lease back is more expensive to the company , thus easier to obtain.
Also, since the bank is the legal owner of the ships, there is no worry to the bank in case of bankruptcy.
Let's hope that the charter rate is more than enough to cover the leasing cost AND the leasing period .
So, our great leader is technically correct that the company will be "debt free"
In the future. But........ we added future lease payment obligations instead.
6 or half dozen.
Isn't owning stocks about making money? This has been going down since the Pump about 5 months now, what makes it change the downward slide, while other stocks, especially tech keep going up?
Oil is dropping and so is NAT. Bad sign.
People or fund pumping out 500.000 share at price 3.28 the last 4 min.
Big selloff of share.
Many think the shareprice will sink much. Its not small shareholder 3-5-10.000 share at time.
If you are smart sell yourself out to and go back in on lower level... Save money people.
What are we going to do when 3 months of oil supply is already bought and delivered to the end users?
This took place with the negative oil price back in 2Q.
Answer: Wait 3 months.
Breaking news. Rumors that dividende will be 0.10 cent. Dividende cutted from 0.20.
profit of company Q3 aprox 21.6 mill
This is bearish for shareprice. Biden will win election and stockmarked will fall 20%
If I am not wrong shareprice of NAT will sink to 2.60 within 3 weeks.
Another way to look at NAT's so called financing of these 2 newbuilds is to consider what its competitor TNK did in the spring of 2019. At that time, TNK had too much debt and rates were low. They were transparent in the situation that they were in. They informed the public that they had a plan to raise cash - they said that they had various levers that they could pull if necessary. One of these levers was entering into a sale leaseback for a few of its Suezmax vessels - which they eventually had to do. They did it with the same outfit that NAT did. TNK was transparent in what the terms were and why they needed to do it - which was because they were worried about running out of money. In a recent call, after their cash situation was more than stabilized, TNK management discussed their desire to buy the ships back at the earliest possible date, because no one prefers to be in the situation where you are making lease payments on what were your own ships.
So you give away the cash that could have purchased these ships outright and now a few months later you have to borrow money. It's like throwing a big party for your friends to show how great you're doing and then the next day when you're broke everything goes on the credit card.
It's been nearly 5 months since the last dividend was declared and nearly 7 months since the one prior to that. Does anyone find that odd?
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