I’m going to skip past explaining what an Oil Contango is. Also if you haven’t noticed, we’re in an oil crash on top of all this covid-19 volatility.

Regardless, OPEC and Russia are claiming they have come to a deal to cut production, it’s not true. The saudi’s can still maintain profit while prices are near $20 a barrel. Low prices is bad for the U.S. oil game. Russia and Saudi Arabia are in a good position financially when U.S. oil is not doing well.

Anyways this is where this play comes in.

$NAT is an oil shipping tanker company. They store oil on large ships and charge lots of money to store oil. They are currently charging 5x what they used to 6 months ago due to the over supply of oil and demand for storage for said oil.

Their CFO recently bought 60,000 shares for $4.725 on 3/30

source

Another interesting thing to note is their dividend history

See the steep rise in 2014? That was last time barrel prices were dropping like they are now.

Low oil prices = good for oil storage tankers

When they increase their dividends — expect for institutional investors to hop in to secure nice dividends on a cheap stock. That’s going to be a huge jump in volume and it will send the price sky rocketing. Meanwhile, you’ve been holding the whole time😉

This is going to moon, hop in Monday.

As of now, it’s trading for $4.06 I expect a movement to at least $6 maybe even $8 a share.

Also, $STNG is another lucrative play but it’s not a penny stock…

Good luck guys🤘🏻

submitted by /u/TampaSunset
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