Nordic American Tanker has a fleet of 23 oil tankers that they can lease to clients who are looking to either ship or store crude. That means the dynamics of the tanker industry are very different from that of an oil producer or the offshore drillers that also lease their equipment.
The tanker business has almost nothing to do with the price of crude. If anything, lower crude prices are a good thing, because tanker companies can benefit by providing more ships to transport oil that is part of the production glut from places like Saudi Arabia.
At the same time, there is also more demand from speculators who want to use the tankers as giant storage containers because there is no other place to put excess oil as they wait for the price to go higher.
"After years of underperformance, things have finally turned around at Nordic American Tanker, and even though the stock has already doubled in a little over a year, I think it has more room to run," Cramer said. (Tweet this)
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Cramer based this judgment on the fact that the fundamentals of the tanker industry are looking solid right now, and he thinks they will stay that way for a long time. He specifically chose Nordic American because it has juicy yield of 9.7 percent, and he considers its balance sheet to be about the best in the industry.
He also thinks it has the best fleet in the business, as all of their ships are less than 20 years old and in excellent technical condition.
"Right now, the tanker space is on fire, and Nordic American Tanker is the best company in the group," Cramer said. (Tweet this)
The "Mad Money" host recommended buying the stock on weakness, particularly if it trades below $15 because the yield will go above 10 percent. Ultimately, Nordic American could be a great long-term way to play the energy business.