Frontline Ltd. (FRO) - Page 2

Fredledingue · #9 (**permalink**) 10-02-07, 03:03 PM

Too bad I didn't buy it one month ago. (I almost ran out of cash and at the time of the banking crisis, it was better to keep some).

Maybe I'll buy on the next weakness at 48 or 47.

Airelon · #10 (**permalink**) 10-10-07, 11:43 AM

October is historically a big down month for the market overall. Not as bad as September, but as far as 'average joe' perception - October is a big month in the minds of many traders in regards 'anniversaries', especially in terms of years of 7.

Now we have the dividend announcement. $5.00 drop in price. November to the Christmas market rally is around the corner, 6 days after the dividend is paid.

We about to see another buying opportunity with cheap prices in FRO? We going to see $35? If so, I'm buying this sucker like it's going out of style if there is no accompanying very bad news (like my GMR is experiencing at the moment)

Fredledingue · #11 (**permalink**) 10-10-07, 03:45 PM

It must be disapointing for FRO holders to see the price per share drops by the same amount or more right on ex-dividend date.That means it was no use to buy it for theextra divy around $49.But FRO is nonetheless atractive at these prices.I'll wait the end of october 'anniversaries'. Maybe FRO will lose another dollars or two. Thought I doubt it will go under $40.I'll be happy to buy at $42~43.I said above I considered buying at $47~48: That was including the $3 extra + normal dividend .

Airelon · #12 (**permalink**) 10-11-07, 01:30 PM

Honestly though, for long time shareholders, it's not disappointing at all. Well, I guess I can only speak for myself. I get paid the $3.25 in the divvy. Naturally, the stock is going to take a dive after announcement like that. I mean, for traders it wouldn't be a good announcement if they had just bought and are looking to sell within the year.

But for myself? I'll get paid the $3.25 on what I already own. Which means that after the divvy is paid (Probably come November barring any really bad news), I buy a bunch more FRO, so that the next time, I get paid even more. FRO is as regular as the grocer when it comes to paying divvy's - so I am reasonably (Less than 3% of my total portfolio is with FRO) confident when it comes to the future, and paying myself again. I'm careful not to get too piggish. Like I said, FRO could go under tommorow, and it's only 3% of my portfolio. Would suck major, but wouldn't end me.

Fredledingue · #13 (**permalink**) 10-14-07, 02:49 PM

FRO shares are on a declining trend for some unkown reason, not related to the health of the company. Maybe simply the market moving like this.

Their business is stable. It's also a good thing that they are not only into oil tanker.

It's funny I found a old sheet of paper, written one and half year ago when listed the result of a stock screening and personal researches, and guess what symbols figured in the list? FRO!

I will see how long this decline in pps will last.
Could you elaborate on the "November barring any bad news"?

Airelon · #14 (**permalink**) 10-16-07, 10:44 AM

Technical retracement is what I'd personally call it.

Could you elaborate on the "November barring any bad news"?

Sorry mate, I meant to reply to you sooner, but you know how it is. You think "I'll come back and answer that one tommorow", but then the next day it doesn't show up as a new message. and you forget completely about it.

Well, I think I said that due to what was going on with my GMR stock. Seems that oil spill ruining Puerto Rico right now? May have been as a result of The GenMar Progress - one of GMR's ships. If they are found guilty, then they'll have to pay 3x's the cleanup. Probably won't do wonderful things to their stock (Although they are up for the last 5 days).

That was going through my mind when I posted that. So barring any news, like, say A Frontline ship collides with god knows what.

I'll be buying more FRO.

Airelon · #15 (**permalink**) 10-17-07, 11:06 AM

Gotta love this business. I swear, the shipping industry is like something out of a James Clavell novel "Nobel House" (Which I just finished reading again)

I own stock in both SFL and FRO.

* * *

Frontline to receive 25.4 mln USD due to early termination of vessel deal

OSLO (Thomson Financial) - Frontline Ltd said it is to receive a one-off compensation payment of 25.4 mln usd from Ship Finance International Ltd due to the early termination of a charter deal for the very large crude carrier (VLCC) Front Duchess.

The payment will be recognised in the first quarter of 2008, the Norwegian shipping firm said.

Airelon · #16 (**permalink**) 10-22-07, 09:43 AM

I'm beginning to wonder if the self-appointed guru's such as at
Bloomberg and of Jim-Cramer ilk - are angry at the tanker companies for some god unknown reason. They've been slamming them on their entire rise up.

Bloomberg's latest article presents a glut of very true facts. To paint a very incorrect picture. There is a glut of tankers, more tankers than can be sold, or carry cargo profitably. For many companies. FRO, SFL, and GMR have not been suffering as much from this problem. They've made sure their tankers are convertible, and don't rely on oil alone for cargo.

There are hundreds of other companies that have been, but it seems they wish to throw FRO, SFL and GMR out with the trash (much as happened to NLY during the mortgage blues this summer). Jim Cramer has been slamming FRO on it's entire climb up to $50.00 - nay-say'ing the entire way.

FRO has a P/E right now of 5.

Yeah . . . FIVE.

Good lord, they have a consistent history of paying $6.00 annual dividends. If they manage to drive this stock down with the other trash - I won't be pleased. But I can guarantee, that as long as FRO is paying me this dividend for all my shares - I will continue to accumulate.