NAT (Nordic American Tankers Ltd) recently pulled back to support following a rejection off the yellow downtrend line. With a dividend yield of over 15%, NAT will be added as an Active Growth & Income Trade idea with the yellow downtrend line as the current price target & additional targets likely to be added, depending on how both NAT & the broad markets trade going forward. Suggest stop of a daily close below 9.90. Weekly chart:
NAT weekly Feb 12th
Zooming down to the daily chart, NAT recently reversed off support while at oversold levels which have historically preceded tradeable rallies in this shipping stock.
NAT daily Feb 12th
Please keep in mind that stocks with above average dividend yields, which at over 15%, certainly puts NAT in that category, often run the risk of a dividend cut or elimination. NAT appears to be a case of “the baby thrown out with the bathwater” as the shipping stocks have been in a vicious bear market in recent years. I believe a solid fundamental case for NAT can be made in this recent letter from Herbjørn Hansson, Chairman & CEO of Nordic American Tankers Limited (click to view letter).