Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Nordic American Tankers (NYSE: NAT ) dropped 10% today after releasing earnings.
So what: Revenue totaled $10 million in the quarter and fell well short of the $21.5 million Wall Street expected. The company also lost $37.7 million, or $0.48 per share, which was far worse than the $0.31 loss analysts expected.
Now what: The long-term trends for the crude shipping business haven't looked strong for years, and this is just another example of the struggles. In particular, U.S. demand for foreign oil is dropping, and that creates a huge drop in demand for ocean-going oil. I'd stay far away from Nordic American Tankers and the entire industry, because I don't think a long-term boost in demand is coming any time soon.
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