These 3 Oil Stocks Just Got Hammered (but That Still Doesn't Make Them Worth Buying)
This past week was a turbulent one for investors in Bristow Group (NYSE: BRS), Oasis Petroleum (NYSE: OAS), and Nordic American Tankers (NYSE: NAT). Those oil stocks got hammered after announcing moves to shore up their balance sheets and business prospects because they paid a high price to do so. That steep price will make it harder for them to create value for investors in the future.
Oil tanker company Nordic American Tankers was the worst performer in the group, plunging nearly 27% on the week. Sparking the downdraft was the pricing of a public stock offering. The company sold $110 million in newly minted shares at $2.75 apiece, which was significantly below where shares traded before the announcement. That said, it needed the money to bolster its balance sheet since it has three new ships joining its fleet next year that it had to finance. While it obtained bank funding for those vessels, it needed more capital to keep its head above water after tanker rates plunged this year. Nordic American Tankers, though, paid a steep price for that breathing room after having sold 40 million new shares, which is a jaw-dropping number for a company that just had 101 million shares outstanding last quarter.
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Source: Fool.com
Nordic American Tankers Ltd. Stock
Currently there is a rather positive sentiment for Nordic American Tankers Ltd. with 5 Buy predictions and 0 Sell predictions.
As a result the target price of 5 € shows a positive potential of 47.28% compared to the current price of 3.4 € for Nordic American Tankers Ltd..
