Chalk up yet another reason to fear the oil tanker industry, Cramer said Thursday.
The "Mad Money" host was referring to the fact the CEO of one of the largest tankers is in the middle of an oil price manipulation lawsuit. The Commodity Futures Trading Commission is looking into how oil prices have skyrocketed, in part, because some traders have been buying crude on margin, which then jacked up the price of gasoline.
The commission has now accused some traders of cornering the market in 2008, which lead to increased gas prices. As it turns out, the trading companies in question belong to Norwegian shipping magnate John Fredriksen, who serves as CEO of Frontline . With this news, Cramer is putting the entire oil tanker industry on the "Sell Block."
"It’s just too much," Cramer said of the news. "This group is simply too dangerous."
Cramer has long recommended avoiding the oil tankers, but this piece of news is just another reason to stay away. After all, the industry is plagued with too many ships, hideous balance sheets and undesirable ownership structures.
If he had to own an oil tanker, Cramer would consider Nordic American because it has a "best of breed" balance sheet. It also boasts a 5 percent dividend yield.
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