4-Star Stocks Poised to Pop: Teekay Tankers

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil tanker operator Teekay Tankers (NYSE: TNK) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Teekay Tankers' business and see what CAPS investors are saying about the stock right now.

Teekay Tankers facts

Headquarters (Founded)

Hamilton, Bermuda (2007)

Market Cap

$273.0 million

Industry

Oil and Gas Storage and Transport

Trailing-12-Month Revenue

$141.2 million

Management

CEO Bjorn Moller (since 2007)
CFO Vincent Lok (since 2007)

Trailing-12-Month Return on Equity

40.5%

Cash / Debt

$22.4 million / $317.9 million

Dividend Yield

18.2%

Competitors

Frontline (NYSE: FRO)
General Maritime (NYSE: GMR)
BP (NYSE: BP)

CAPS Members Bullish on TNK Also Bullish on

Freeport-McMoRan (NYSE: FCX)
Vale (NYSE: VALE)

CAPS Members Bearish on TNK Also Bearish on

DHT Maritime

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 155 members who have rated Teekay believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars randomvariable and Teacherman1, both of whom are ranked in the top 10% of our community.

Just last month, randomvariable remained cautiously optimistic about the income opportunity:

Good numbers and profitability. The big dividend is suspect, but I'll take it. Beta is lower than industry, which could be a drawback in a rising market, but overall, I think this company will do well against the market.

In a pitch from the same day, Teacherman1 expands on Teekay's tanking stock:

This is all about the dividend. … It is down some because they sold some shares to buy another ship. This was to keep from taking on more debt and maintain a healthy balance sheet. If and when the world returns to normal, it will begin a steady climb upward and hopefully continue to pay that dividend. This company is being used by [Teekay (NYSE: TK)] (the parent company) in a similar way as [Navios Maritime] uses [Navios Maritime Partners, L.P.].

What do you think about Teekay Tankers, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 01, 2009, at 11:21 PM, Teacherman1 wrote:

    At the current price it is paying almost a 20% dividend. Get future growth potential and a 20% return while you wait. If you believe that the economy will revive, and oil shipments will increase in the future, this is one to check out. TK (the parent company) has incentive to keep adding tankers to this subsidiary, since they get half of the dividend. No guarantees, but the track record (a couple of years) is very good. Do your own analysis, but worth looking at. JMO and worth exactly what I am charging for it.

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Teekay Tankers CAPS Rating: ****

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