Teekay Tankers Ltd (TNK)

[Ripcord01]

Honestly....A buy at these prices.

Here is why.

just raised dividend from .04 to .12 per quarter.

Tanker day rates are not going down any time soon...if anything they will go up.

So why is it going down?

Big rating cut from analyst at JP Morgan..he cut from outperform to underperform....but has a price target of $7? So basically the market has over reacted to the rating cut.

The second reason is that TNK is now being compared to NAT in size and scope fleet. So TNK is probably going to go down to a bit until dividends yields of both match up. A good example how to companies are locked together is Visa and MasterCard. They basically both do the same thing? Is there really anything different about them so they trade in a tight range after take into consideration the number of shares of stock outstanding.

So why buy? The dividend payout is too good to overlook and historically the dividend payout is low...and there is room to grow in the cycle. Basically this is round 2 in the tanker market turn around.