Stocks To Watch: Nordic American Tankers Ltd [NYSE: NAT] has been on a bullish trend for the last few days. In yesterday’s trading session, it gained by 20.45%, to close the day at $3.71. This stocks strong upside trend is driven by a strong tanker market. Research shows that the Suezmax demand increased by 60% last, week, and is up by 400% in the month. NAT is a big player in this business, and has a fleet of Suezmax tankers.
The company’s fleet of tankers hold 21 units in the spot market and its costs per ship stand at $8,000 a day, while the spot market is at $68,000 and rising. As such, strengthening of the freight market has directly benefited this company and the same is reflecting in its stock price. Besides, the company has given positive projections for the coming quarter. It has stated that it doesn’t expect much difference in Q3 results and they are likely to be strong as Q2. The results are expected to be released on the 25th of November.
Looking at the daily chart above, NAT is currently in an uptrend. It has closed higher for 5 consecutive trading sessions. The volume has been on the rise and yesterday alone NAT traded 17.29 million shares. In pre-market trading, the stock has eased up slightly and is down by 2.15%. This is quite expected after such a strong bull rally over the past 3 days. However, as long as the chart stays intact the bullish trend could hold, even if retraces in the short-term.
In the day, external factors to watch will include the market’s reaction to the news that China is open to a partial trade deal with the U.S.
About Nordic American Tankers Ltd
Nordic American Tankers Ltd is a tanker company that acquires and also charters tankers in Bermuda and across the world. The company has a fleet Suezmax oil tankers, and has its headquarters in Hamilton, Bermuda.