These forex cheat sheets will reveal when the best times to scalp are (they are NOT when you think) and the times to avoid. Plus you will discover how to break the market down into several "micro-markets" and trade each one accordingly.
Tuesday, April 28, 2009
The oil tanker business has been sucking eggs since the early seventies. Rates are at ten year lows as oil demand dwindles.
On Monday a Bloomberg.com article Monday that said supertanker rates are rising. Spot rates, or those for immediate payment, rose 40% in just one week for ships headed to the East from the Middle East.
There are new regulations concerning the size of ships, because of environmental concerns. Some of the ships now operator may very well be banned. Since there will be fewer ships available, they will be in greater demand.
I'm recommending a buy on Nordic American (NAT) because only 8% of its ships are chartered for 2009, and none for 2010. Since fewer of its tankers are reserved at a locked-in rate, the company will benefit most from rising shipping rates. NAT also pays out an 8.25% dividend yield.
I would buy Nordic American (NAT) anywhere here between $28 and $32, the next time it goes above $32.50 I think it is heading for $40.
Trade carefully,
The Rogue Trader
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