Send me real-time posts from this site at my email

Why Nordic American Tankers' Shares Popped 12.7% Today

What happened

Shares of Nordic American Tankers Ltd (NYSE: NAT) jumped as much as 12.7% in trading Thursday after oil tankers were attacked in the Middle East. At 3:50 p.m. EDT, shares were still up 11.8%.

So what

Two oil tankers were attacked in the Gulf of Oman, near the Strait of Hormuz, where one-third of the world's shipped oil travels. The attack sent oil prices higher, climbing more than 2% near the end of trading.

Image source: Getty Images.

The attack sent investors in a mission to find companies that may benefit from rising oil prices or changes in energy markets. That's what sent shares higher today, not any fundamental change in the business.

Now what

It's not at all clear that revenue or earnings for companies like Nordic American Tanker will rise because of this incident. I would pay more attention to the company's current net losses and the weak net margins currently being generated. I don't see a tanker attack as a long-term bullish sign and, despite the surge in shares today, I don't think this is a buying opportunity for long-term investors.

10 stocks we like better than Nordic American Tankers
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Nordic American Tankers wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome!!! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue