Jim Cramer: ‘Darkest Before the Dawn’ Stock?

With shares down more than 50% in two years, could the path of least resistance be higher for this stock?

Jim Cramer can't help but wonder if that's the case with Nordic American Tankers.

"The oil tanker business has been terrible for years now because of a massive oversupply of ships that have been keeping day rates down for everyone in the space," Cramer explained on Wednesday's broadcast.

And no stock in the space has been spared punishment from the downward momentum.

"Nordic American has been hammered," Cramer said. "It now trades at $8 and change, down huge from $25 just two years ago. "

However, sometimes investors throw out the baby with the bathwater. That is, sometimes the momentum lower drives a stock below the level where it should have otherwise bounced.

Manhattan New York sunrise
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That may be the case with this stock.

Cramer always says nothing matters more than fundamentals and fundamentals are relatively attractive here.

"Nordic American is the best tanker company in the industry, with terrific management and the cleanest balance sheet in the business," said Cramer.

As a result, Cramer can't help but wonder if the worst is over for this stock.

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"Even after the dividend cut, the stock sports a 7.3% yield at these levels, so they're paying you to wait for a turn in the tanker market, and with the Chinese economy coming back, that turn might be closer than it seems," said Cramer.

Now, it's worth noting the Mad Money host made it clear that this stock was a play on recovery. "When the market comes back, this stock should perform, but the market has got to come back first," Cramer said.

However, if you have an appetite for risk, this stock may belong on your radar. Like they say, it's always darkest before the dawn.

"Perhaps this is an 'always darkest before the dawn moment'," said Cramer.

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