Why Shares of Nordic American Tanker and Other Shippers Are Soaring Today
Shares of Nordic American Tanker (NYSE: NAT) climbed more than 11% on Monday, and shares of Teekay Tankers (NYSE: TNK) and Teekay (NYSE: TK) were both up more than 9%, after Nordic American reported "strong market improvement" for its Suezmax tankers. If so, that's good news for a number of shipping stocks, and investors are celebrating by bidding up the company responsible for the prediction as well as one of the largest Suezmax operators.
In a letter to shareholders, Nordic American referenced past company predictions concerning a rebound in the tanker market, but said "seeing is believing." The company noted a report from international ship brokerage Clarksons Platou reporting "the largest week-on-week increase in the history of their freight index."
Nordic American says that from Thursday to Friday last week, reported Suezmax rates jumped 60% overnight, and the company believes the strength is sustainable.
Source Fool.com
