Any comments or analysis on this value stock, NORDIC AMERICAN TANKERS LIMITED NAT: NYSE.

0
0
Marked as spam
Asked on May 26, 2021 7:04 am
0 views
0
Private answer

Hi Mark,

I don't know NAT too well - but that is one ugly chart. The company seems cheap based on traditional valuation metrics but here is the catch - it has always been cheap. Oil tanker stocks don't command high valuations and despite its multi-year downtrend, it is actually now trading above historical averages on a P/B and P/S level. Most are trading at single-digit PE ratios and below book value.

There are signs that the industry is primed for a rebound, but it just remains a very un-loved area. That being said, I don't see too much downside from here and it could rebound should the industry finally catch some positive momentum. It hasn't really had much momentum for more than five years now. I should also note that NAT has one of the older fleets, which likely makes it less attractive than some of its peers.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on May 27, 2021 5:44 am