Teekay Tankers (NYSE:TNK)
Teekay Tanker owns and operates a fleet of oil tankers that it charters using fixed-rate contracts and offers on the spot market.
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Zacks Rank 5-StrongSell, Recommend Neutral, Industry Rank 162 / 217, Target 4.80, Avg Target of 5 analysts 5.75
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With the economy turning around a bit, and automotive industries selling more cars, oil will be a necessity. Teekay Tankers will reap the rewards of this pickup.
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I will soak up the divies while i wait
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Tanker markets are at their absolute worst right now. You can't make a worse case than oversupply during a global economic downturn. Day rates are at historic lows. However, Teekay Tankers has 60 % of their ships locked into fixed rate contracts well above current spot market day rates. This insures a good revenue stream until the end of 2012 at least and I believe 50% of their ships are on fixed rate through 2013. This gives time for the tanker market to recover (whether it be through demand recovering or supply decreasing or both) while TNK has a stable revenue stream and if you don't think the dayrates will go much lower there is not much to make you think they will decrease their dividend further. Last quarter they paid out $0.15 divvy. So while you wait for the tanker markets to recover you collect your 10+% divvy. When the tanker market and day rates do recover and TNK can start increasing their dividends again, you could be collecting a 20+% annual dividend on your cost basis today. Not to mention the capital gains. I feel this is a strong buy under $5
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I like this company, it's stock, and it's sub $4.00 price. I believe their new interests will see a huge return over the next few years!
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In it for the income.
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Beaten down oil tanker business should recover, but it will take a couple of years. Don't buy this if you're looking to score in the next 12 months.
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Currently trading well below the 50 and 200 day average. Stock reached new low yesterday due to hold downgrade; however it is currently paying a good dividend. Look for stock to drop a bit more but rebound due to investors looking for somewhere to make money on. Short term gamble.
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bottom is reached
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TNK underperform due to the over supplyl of tankers. The oversupply of tankers caused by overexpansion of fleet size causes a 14 % vacancy factor, which leads to a collapse in stock prrices.
The huge 20% yield is a result of very inefficient business practices.
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Chinese demand for coal is unstoppable.
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shipping should do well in an inflationary environment
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PAYS A GOOD DIVIDEND.
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Solid dividend, solid business, should do very well over the next year when the rest of the market is in turmoil.
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Giving these 5 stocks a BUY rating. At these prices they are a great value. NEP, TNK, XRTX,TSYS, CH
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5 STAR, Small-cap, dividend payer
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This stock has paid it's dividend and interest in it will fall for a few weeks.
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At times very large amount of cash generated and distributed to shareholders. Buy low.
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Crazy dividend.... Young investors that are in for the long run will win HUGE with this one!!!!
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