Why Nordic American Tankers Shares Sank
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Nordic American Tankers dropped 10% today after releasing earnings.
So what: Revenue totaled $10 million in the quarter and fell well short of the $21.5 million Wall Street expected. The company also lost $37.7 million, or $0.48 per share, which was far worse than the $0.31 loss analysts expected.
Now what: The long-term trends for the crude shipping business haven't looked strong for years, and this is just another example of the struggles. In particular, U.S. demand for foreign oil is dropping, and that creates a huge drop in demand for ocean-going oil. I'd stay far away from Nordic American Tankers and the entire industry, because I don't think a long-term boost in demand is coming any time soon.
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The article Why Nordic American Tankers Shares Sank originally appeared on Fool.com.Fool contributor Travis Hoium and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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