NAT Stock Is $7 NOW! Are Oil Tanker Stocks to Buy Now?
Application form to apply & try and get in my Private Stock Group/Financial Fortress
Today we chat about NAT Nordic American Tanker stock which went over $7 today! This stock is flying up as the company is making money hand over fist. A lot of stock market investors want to get in this one. Oil prices continue to struggle and supply-demand for oil is way out of wack. Oil storage is filling worldwide. This has caused oil tankers to make a ton of money and NAT stock is one of those.
Want to join our free STOCKHUB discord chat? Here is the link
This is where you can chat for free with other investors in the stock market about individual stocks or things going on in the market. Enjoy!
*My Instagram is: FinancialEducationJeremy
This is a Jeremy Lefebvre Production
Created by Jeremy Lefebvre
Well guys, there’s a stock in the hour in a tea stock North American tanker stock. And that is what we’re talking about here today guys. And we’re not just talking about this stock we’re really talking about the oil tanker stocks in general in these stocks to buy kind of what’s my perspective on this because what is benefiting a stock like na t North American tankers also benefiting a lot of these other players in the oil tanker space.
Okay, now this stocks trading at $7 to here today, up almost 20%. That is a massive, massive move down this good day for the markets, the Dow Jones Industrial Average up 1.5%. The Nasdaq is up 1.1% s&p 500 is up 1.5%. But then you have any t stock up nearly 20% here today a massive, massive move.
Now if you’ve been following the channel pretty close recently, you know, I bought this stock, it was like I don’t know, four or five days ago, I put 30, a little over $30,000 into this particular stock. And I’m really excited about it. Needless to say.
I think we’re going to make quite a few dollars, the day I went ahead and bought my shares actually that particular day, the stock was trading in the fives and actually even traded in the fours at one point on that particular day. And of course now now looking back.
I wish I would have put a little more money in it. But you know, hindsight is always perfect, because put it that way. Okay, we’re doing amazing on this position, we’re up over 30% as of right now approaching a $10,000 gain on our 5900 shares. And that’s in five days, you know, almost $10,000 made in five days, like that’s pretty dang good.
And when you see that type of gains, it’s the you know, you start having thoughts like maybe let’s just take some profits, let’s just, you know, take profits, and go ahead and maybe run from this one, because it’s a lot of profit in a very short amount of time on an investment that was minimal right to make nearly $10,000 in five days, it’s going to cross your mind maybe, maybe I should go ahead and take profits.
But here’s what I’m going to tell you in this video, I’m going to tell you why I’m not selling nit and I actually have no plans to I will tell you exactly what price I will start selling at and I will tell you what price the stock would have to hit for me to sell out all my shares Okay, so I hope you guys really enjoy this hope you get a lot of value.
Make sure you smash that thumbs up button as always. And for everyone thumbs up on this video, we will donate a thumbs up to a YouTube channel in need of a thumbs up. Okay, kind of like that scrub guy over there. Financial Education too. I heard he needs some thumbs up.
Okay, I might donate him a few i right. All right, guys. So start talking about this one Nordic American tank. Okay. So first off, this is this is more of a short term trade for me, which you guys know me as a long term investor, I make very few short term trades.
Usually I’m planning on holding in stock for a minimum of a year, but usually several years is kind of my plan going in with a stock. That was not the plan here with North America taker. This is a short term trade. And I very rarely make these but I’ve got to say the opportunity here was just too big for me to say no, I don’t want a piece of that one.
Okay, it was just too big of an opportunity. And I’m not proud of it. You know, I always preach long term investing in 98% of what I do in the stock market is long term investing, but Gosh, man, you know, sometimes there’s just too much money to be made.
I mean, usually if I just saw a pile of money laying around, I wouldn’t grab it. Okay, but man, if I was going to the middle of a desert, and I’m going through that desert and all sudden I see a bag of money, who has nobody around I might have to grab that bag of money and you know what, you know what guys?
I’m gonna have to grab in that bag of money then at that bag of money is in a T stock that’s what the bag of money is. And I said, You know what, I’m gonna scoop this bag of money and we’re gonna we’re gonna make a little bit okay, here’s the issue.
Here’s the massive issue that’s going on for the oil industry right now and here’s why any tea is making money hand over fist right now you won’t talk about making bags of money that’s any tea right now and basically all the oil tankers okay? storage is are filling worldwide right now okay.
And I mean like they’re talking about the literally like oil storage is going to be full very very soon. This is almost like a crisis like i’ve you know, who could have ever foreseen this situation this is this is absolutely nuts. I mean, it’s going to start getting hard to even store oil anywhere okay.
Goldman Sachs put out this here today. Global oil storage could be maxed out in just three weeks driving substantial volatility guys, listen to that. Okay, we’re talking about around the world. We’re not just talking about one country we’re talking about worldwide oil storage being maxed out in three weeks guys, that is your nuts.
Okay, that is really really soon. What the heck do you start doing with oil like literally let’s say you’re pumping out the ground and you’ve got nowhere to point put it you know, you didn’t already like let’s say all the tankers are full of all the land base resources are full where the heck do you start putting this stuff like that’s absolutely. insanity. Okay, absolute craziness.
Okay, and this is one of the reasons why they’re talking about June contracts could go negative. Again, we saw may contracts go go negative. Obviously, when those were expiring, that could vary. Be what ends up happening in June because essentially what ends up happening is when the contracts expire, whoever’s holding those contracts, they have to take the physical delivery of the product and figure out where the heck do you put this stuff, okay.
And so this could be a real messy situation, they’re talking about potentially, June contracts, on the last day of trading could go negative, or 100. Negative $100 are talking about remember, it was it was literally just a few weeks ago that we thought it was like inconceivable for oil prices to ever go negative.
I mean, even below, like $10 would be just like, you got to be crazy. But we’re talking in this situation, possibly negative $100. And why why would this happen? Well, oil storage is so expensive, and it’s so unrealistic to start finding oil storage, that they’re going to be in a big, big, you know, bad situation and they’re going to you’re going to have to pay to get rid of those contracts a massive amount.
Because whoever takes it takes delivery, the oil has to pay to get that stuff stored. And and they’re so desperate for storage that you have to pay almost any price. So you’re like, it’s like, oh, hey, what do you got in your wallet? Okay, giving it all okay, what you got in your wallet and gimme how your money? Okay?
That is oil storage situation right now. Because, you know, like everything else. It’s a supply and demand game. And as we know, right now, things are way out of whack. Okay. The net CEO, the Nordic American tanker CEO went on Jim Cramer a few days ago, okay.
And I got to say, oh, my goodness, that was an entertaining video, okay, and very entertaining video. But we got some extremely, extremely useful information out of it a couple ways. Okay. So one is then at CEO basically said, you want a tanker from an at which I’m not even sure they have any more tankers left.
But if you want one, you’re gonna have to pay Nordic American tanker $70,000 a day. And you have to do that on a six month contract. $70,000 a day for a six month contract for Suez max. Okay. which holds about a million barrels of oil, okay. 70k odd day, that is unreal.
Okay, why is this so unreal, boom, normally, for Suez Max, you’re usually going to be paying 12k to maybe 25k. Somewhere in there. That’s what they usually get. In here. Right now you’re paying 70k. Now imagine if you wanted to for a shorter time. Now, they might not even give you one of the tankers if you wanted to for the short time.
But imagine what you’d have to pay if you want to for a shorter time. We’re talking 100k, maybe 200k plus a day. That is insane. Okay, that is absolutely insane. The kind of money this company is making right now. Keep in mind, the North American tanker CEO and this is one of the reasons that I’m like, I don’t think I want to sell the stock anytime soon.
The Nordic American tanker CEO goes on to say he’s never seen such a strong market. This guy’s like in a 70s. Okay, he’s been the oil tanker business for decades now. And long, long time. Okay. He says he’s never seen such a strong market for oil tanker demand. Okay.
And keep in mind, this was a stock that back in 2016, was 15 bucks a share. And what we can tell you is the oil market, what the rates, you know, these companies that wield tankers in nit are these other players we’re getting at that time, we’re not even comparable to what they’re getting right now.
So it’s very hard to imagine this stock not going back to $15. All things are possible it is the stock market, maybe this stock doesn’t go back to 15. But it’s hard to imagine a situation where the stock doesn’t go back to 15. And we’re talking in a very short amount of time, like not having to wait like years, just the mere fact that the business is way stronger, and I mean, way stronger than it was back then.
Okay. So, you know, when you when you kind of look at the kind of the risk reward, it’s kind of like, Huh, this is kind of interesting, okay, the best market ever. He said that several times, even at the end to end the interview was hilarious. He goes, Hey, Jim, we’re making a ton of money. It was hilarious.
Okay. But very, he was very clear that interview, this is the best time that the oil tanker companies have ever had, okay. And keep in mind that, from my understanding, this is even better than 2004 2005 time, that’s back when the stock was $48 a share.
Now I am by no means saying this stock is going back to $48 a share. But it is hard to imagine if this is truly the best time ever for these companies in their history, which you know, according to all oil experts out there, including to the like the CEOs that run these companies, it is the best time pretty much ever for these companies.
It’s hard to imagine the stock going up a lot from $7. Let’s put it that way. Maybe it doesn’t go to 48. Heck, maybe it doesn’t even go to 15 which would be interesting if it didn’t go back to 15. But I think it’s got some upside. Let’s put it that way guys.
So this is really interesting lorry oil supply for outweighing oil demand and that’s even with the cuts that have happened Okay, even with the cuts that have happened, there’s still way more supply out there in the market than there is oil demand.
And that could continue for some time. We know OPEX and a situation where, you know, they might not say publicly, but I think they want to crush USA when it comes to the oil market. I don’t think OPEC wants the USA to be a player in the oil market.
USA has been a player in the oil market for the last 10 years. And I don’t think honestly OPEC likes that I don’t think they look at the USA, you know, being having their own oil production, I think they kind of look at that as as a very much a negative. And, you know, with with what happened in North Dakota, and all the fracking and how that just took off like crazy, especially from like, 2010 ish through about 2015.
I think OPEX looking at this time, it’s like, that’s just crushed those industries, let’s put all those us players that have the smaller players out of business, and let’s just, let’s just get rid of them, okay, let’s just get rid of them. But here’s kind of an issue.
And here’s why everybody’s trying to hold off for last minute if you’re actually producing oil out there, because it’s a lot of money to actually shut these wells, okay. It’s not like it’s just like a faucet where you just like turn it on or turn it off or something like that, it actually is very costly to shut a well.
And here’s the other issue, once you once you shut one of these, it might be damaged for F, okay, meaning it doesn’t produce in the future, or if it does produce, it produces at a much less range than what it was doing before. So that is a huge risk in itself.
So a lot of these companies are trying to hold out till either they go bankrupt, or they’re forced to absolutely absolutely shut the wells to go ahead and do that, which is just once again, putting the the supply and demand situation even more out of whack.
Okay. And so when you add all this up, essentially, there’s going to be massive amounts of of oil storage needed for at least the next one to two years. And because here’s the situation, right, the producers keep producing oil, and even if they cut, they keep producing, we know economies will start to come back in some form, maybe throughout the summer, maybe in the fall time.
But even that’s going to be limited, right? Like we’ve talked about many times, that’s channel, I doubt everybody’s just gonna go out and be driving all around, and everything’s gonna be back to normal all sudden, especially if we don’t have any type of, you know, Vax, in the market or something like that.
So mass amounts of oil storage is going to be needed for probably at least one to two years. So that means the rate somebody like any tea, or the oil, other oil tanker stocks are gonna be able to get over the next year or two are going to be insane. Okay, absolutely insane.
You add on the top of this, that you can’t just build these things overnight and night, it’s not just like, you can be like, oh, let’s just build a bunch of more oil tankers. And no, that takes, that’s a process. Okay. Those are, you know, Suez max might end up costing 16 million somewhere around there, roughly to build.
But the build time on that you’re looking at probably, you know, it depends it but probably anywhere from nine months to 18 months to build a Suez max. So it’s not like there’s going to be massive amounts of storage that just comes out of nowhere.
And it’s just like, Oh, we got all these new ships, and we got all this new land storage, no, these things take a while to build out and get the infrastructure built, especially in any type of major way. So the end of the date, mass amounts of storage are going to be needed for while and so the amount of money that somebody like an NA T is going to make, it’s going to be like Scarface situation that’s in that car right now.
It’s just like, the money’s coming in left and right, the rates, they’re going to be able to get for not just this quarter, but next quarter, the following quarter, the following quarter are going to be substantial, substantial, even if they fall, let’s say in a couple quarters from now, they’ll still likely be up massively year over year, like we’re talking probably still be up like two acts year over year.
If not three extra year over year, maybe it won’t be up 5x or 10x. Like some of the players are getting right now back even if it’s up two or 3x. Like all that money is dropping to the bottom line. And that’s just kind of it’s a fundamental change for these type of business models.
Okay. So next question is, when will I sell Okay, here’s, here’s my plan with this stock, okay, I’ll likely sell about 50% of my shares around the $10 range. Okay, that’s what I would probably get out of about half my shares, I will almost double up my money.
And that’ll kind of start playing with house money at that point time. So about half, you know, right around 10 ish, you know, then I’m playing with house money, okay. And then if the stock goes to $12 to $15, which I think is very much a possibility.
I’ll sell the remaining 50% of my shares. Okay. How realistic is it that it gets to $10? I think it’s very realistic. I mean, we’re the company is having the best time it’s history, likely or oil storage demand is going to be very necessary for quite a bit of time.
It’s hard for me not to see the stock at $10 and $10. Very soon, you know, like I said, it’s the stock market, things are crazy. Things are always possible. Maybe it doesn’t work out, but it’s just hard for me not for the see that situation, even 12 to $15.
I might honestly be selling myself short in that situation with selling the remaining shares in the 12 to $15 range. But my thing with this stock is nit. I don’t want to you know, this could very much be a stock that goes to 20 or $30 a share, but I don’t want to bank on that. situation as being a short term play, you guys know, I don’t mess with the short term plays that often.
You know, if I can double up my money, triple up my money, that’s a W for me, okay, I’m not looking to quadruple or 5x, I’m not looking to get greedy with this one necessarily, I want to I want to take some some money and run with it, this has never been a stock I want to hold for the next five years, and it won’t be a stock I hold for the next five years.
It’s just not that type of stock for me, okay, I got plenty of those stocks, the tests of stocks, the Facebook stock skyworks solutions, and you know, several other companies Uber, you know, those are my stocks that I’m holding for, you know, years to come in the future nit stock be very clear about that this is not that type of stock.
So I’ll likely sell half my position at 10. The other half, you know, in the 12 to $15 range, if it reaches there, which I think it’s very much possibility. Look at this guy’s Okay, this is, you know, shortly before the markets closing here, you know, I love all those tools, you guys know, I love just numbers and sequence like that, like tu tu, tu tu tu tu tu up 22.22% now, okay, up to $7.15.
And we’ll see where this one, you know, when they when they start to report some of these numbers. And keep in mind, it’s not just the back about the fact that I’m gonna make a bunch of money on the stock price going up on this one, the dividends, they’re going to pay me out over the next quarter or two are going to be some ridiculous dividends.
I mean, like the biggest dividends, they probably paid. I don’t know if it’s gonna be in company history, but who biggest dividends they paid in a long, long time. So I’m going to make a ton of money on the stock price going up, but I’m also going to make a ton of money on the dividends that will be paid out, which are going to be you know, pretty ridiculous.
And that’s another fun, you know, part of this one and I love, you know, dividends, the great thing about those dividends is it will be you know, tax less than what my normal tax rate is, which is a beautiful thing, when I sell these shares.
Which I can sell the shares, you know, depends on one’s how much the stock goes up in the short term, but I’ll probably sell them for short term gain in terms of shares, you know, I’m taxed at my normal tax rate that’s not so fun, but the dividend money that’s going to be likely to be taxed at.
I think somewhere around an 18 or 19% tax rate which is obviously much less than than what I pay so very excited about this one and we’re making a lot of money from it and we’re gonna make a lot more money from it. So hope you guys enjoyed today’s video as always, when it comes to short term moves, make sure you’re doing them few and far between you know for every one of these opportunities and take advantage of those there’s 20 stocks.
I buy that are long term investments so you can’t get too addicted to like these quick term you know, quick make money take place. But every once in a while when you get some mass chaos in the market like we have right now, especially in the oil market.
You sometimes you can just look out there and you can see an opportunity where it’s just like there’s too much money to be made here not to take advantage of this guy. So I hope you enjoyed today’s video as always smash that thumbs up button and leave me your opinion down there in that comment section. Thank you for watching. Have a great day.