Teekay Tankers Ltd. (TNK-N)

Our PAST TOP PICK with TNK has triggered its stop at $37.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 11%, based on our previous buy recommendation.    

We reiterate TNK, a Bermuda based operator of 45 mid-sized crude oil and refined product tankers, as a TOP PICK.  Security of energy supply is key in the market today and they move product to market.  It trades at 6x earnings, 1.2x book and supports a ROE of 24%.  We like that cash reserves are growing while they are retiring debt.  We continue to recommend a stop-loss at $37, looking to achieve $55 — upside potential of 30%.  Yield 0% 

Our PAST TOP PICK with TNK is progressing well.  To remain disciplined, we recommend trailing up the stop (from $31.50) to $37.00 at this time.  

TNK is a Bermuda based operator of 45 mid-sized crude oil and refined product tankers.  Recently reported earnings showed revenues were up 129% on the quarter and double on an annual basis.  It trades at 1.5x earnings and supports a ROE of 24%.  It is a low beta stock, meaning it will tend to operate more independently of the underlying equity market volatility.  We recommend placing a stop-loss at $31.50, looking to achieve $51 — upside potential of 21%.  Yield 0%