$Nordic American Tankers(NAT)$ last week was exploring taking up a bearish position on this stock. My trade hypothesis was this stock is over pumped and won't sustain $5 after the dividend payout.
This week, first we had news of virtual meeting with B Riley, and now news of B Riley financials' analyst Liam Burke increasing target price from $5 to $7.50. Coincidence? I don't think so.
Better stay away from this stock from now. NAT isn't worth that much and they're trying to liquidate their old assets i.e. they're still trying to sell ships = reducing capacity. With no immediate plans for renewal, that doesn't sound like a company on track for growth. In fact, it'd make more sense if the meeting was to find ways to finance more capital for renew, maybe through the issuance of more shares?
And pumping a stock price up is one way to benefit the issuing of new shares. But now with sharks playing the field, small time investors like us better stay clear. There's no way to know for certain what's the company and B Riley are manufacturing, but the price really doesn't seem reflective of the company's actual value now.
Cancelled my orders and gonna sit this one out now [Sad] [Smug] [Sweats] [Cry] [YoYo] [Eye] [Allin]
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