Economy Blog » Cramer Sees 25% Upside For Nordic American Tanker

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Cramer Sees 25% Upside For Nordic American Tanker

“There is a stock out there that can give you both a morbidly obese, double-digit dividend yield and up to 25% upside potential,” Jim Cramer told fans of his “Mad Money” TV show Thursday. That stock is Nordic American Tanker (NAT), Cramer’s new favorite oil tanking company. Cramer explained that the overall amount of tankers on the high seas is barely staying flat, despite high demand from OPEC, and NAT is benefiting. The company said its day rates rose to $46,600 a day from $27,000 in the last quarter, and Cramer said it will go up even more. Cramer said investors shouldn’t worry that the company reported weaker-than-expected earnings, because Nordic raised its dividend to $1.18 share, a yield of 11%, which is double what it paid in the third and fourth quarters during the previous year. Bear Stearns thinks NAT’s day rates could rise to $70,000, which would give it a yield of 22%, or a $2.00 dividend. Lastly, he mentioned that only three of the 10 analysts that follow the stock have a buy rating. With such high demand and not enough tankers on the seas, Cramer loves this story.
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