As 2011 comes to a close, it's a great time to look back at what happened to the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Nordic American Tankers (NYSE: NAT ) . The company owns a fleet of crude oil tankers it uses to transport oil around the world. But despite high oil prices, reduced demand in a weak U.S. economy along with a glut of tankers has combined to put a big hurt on the industry. Below, I'll take a closer look at the events that moved Nordic American's shares this year.
Stats on Nordic American Tankers
| Year-to-Date Stock Return |
(50.5%) |
| Market Cap |
$573 million |
| Total Revenue, Trailing 12 Months |
$81.1 million |
| Net Loss, Trailing 12 Months |
($51.5 million) |
| 1-Year Revenue Growth |
(41.5%) |
| Cash / Debt |
$11 million / $170 million |
| Dividend Yield |
9.9% |
| CAPS Rating |
**** |
Source: S&P Capital IQ.
How did Nordic American Tankers do this year?
Nordic American Tankers has a fleet of 20 Suezmax crude oil tankers, up from just three less than seven years ago. Ordinarily, that would be good news, and it has certainly put Nordic American in a position where it can expect to see a big boost to its revenue -- as long as the global economy recovers.
The problem, though, is that several of Nordic American's competitors have done the same thing, building out their fleets and causing a glut of tankers. Recently, rival Frontline (NYSE: FRO ) said that it would need more cash in order to stay in operation through next year. That has hurt companies throughout the industry, including Ship Finance International (NYSE: SFL ) , Overseas Shipholding Group (NYSE: OSG ) , and Nordic American.
One thing that distinguishes Nordic American from its peers is its dividend. Teekay Tankers (NYSE: TNK ) has a higher dividend, but most other shippers fall well below Nordic American's near-10% level. But given that Nordic American has had to issue shares to finance those payouts, it's hard to feel comfortable about the dividend's sustainability going forward.
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Click here to add Nordic American Tankers to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
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