4-Star Stocks Poised to Pop: Nordic American Tanker

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, crude oil tanker operator Nordic American Tanker Shipping (NYSE: NAT) has earned a respected four-star ranking.

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

Nordic American facts

Headquarters (founded)	Hamilton, Bermuda (1995)
Market Cap	$1.21 billion
Industry	Oil and Gas Storage and Transportation
Trailing-12-Month Revenue	$221.42 million
Management	Founder/CEO Herbjorn Hansson CFO Turid M. Sorensen
Return on Equity (average, last three years)	11.5%
Dividend Yield	10.9%
Competitors	Frontline (NYSE: FRO) Teekay
CAPS Members Bullish on NAT Also Bullish on	General Electric (NYSE: GE) Transocean (NYSE: RIG) Apple (Nasdaq: AAPL)
CAPS Members Bearish on NAT Also Bearish on	Ford Motor (NYSE: F) First Solar (Nasdaq: FSLR)

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

Over on CAPS, some 96% of the 926 members who have rated Nordic American believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars goldseth and newscrnname, both of whom are ranked in the top 10% of our community.

In late March, goldseth tapped Nordic American as a tanker built for tough times:

Possibly the strongest balance sheet in the business allows a break even at $10k day rates while industry struggles with oil demand and oversupply of ships...and as the weak players phase out and/or dry dock, [Nordic American's] focus on spot market will allow them to prosper from the long term increase in oil prices and stronger day rates.

In an earlier pitch, newscrnname elaborates:

This company is famous for carrying [low] debt when most of the shippers are debtloaded, and having a unique and transparent business model. They are proud of keeping their yield above 10%, and plan to do so indefinitely. They have a $500 million line of credit available that they have yet to use -- but state that they don't plan to. Instead, they'll issue new shares when they have the chance to make new builds or acquisitions ... Their CEO writes regular letters to the shareholders, and constantly reminds us that the only moves he guides the company toward are moves that will be accretive to dividends.

What do you think about Nordic American, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.