Frontline Ltd. (FRO)

[Fredledingue]

FRO slightly down today, but resisting market volatility.

[Airelon]

Yeah I noticed that one too. Out of the stocks I own there - shipping sector wasn't hit too badly today all things considered. At one point, it was a little odd, another stock I own, TSM was actually up when things went really nuts.

[Fredledingue]

FRO stocks were lower in the last 3 days. The bottom of wave?
Would be nice to sail the rebound.
I see nothing bad at the horizon.

High oil prices means that consumption will be tempered but it also means that it become profitable to fetch oil further away, across the sea.

[Fredledingue]

FRO typicaly follows the market on the long trend.
chart

Stupid IMO...

[Airelon]

Yeah . . .

A lot of companies such as FRO that aren't considered big blue-chips such as your IBM and Pepsi, pretty much are just market followers until there is some big news - which can be few and far inbetween. Tis why I've held off on buying more FRO until the market figures itself out.

[Fredledingue]

Last Q results were ugly, to say the least, for FRO.
Do you think they can go lower?

If their business (in the sens of being busy) follows oil production, then next Q should be better. (See graph in their report in pdf format.)
The problem is that they may cut the dividend on of these days, if the situation doesn't change swiftly.

[Airelon]

Indeed. OPEC has been screwing with everyone lately, and FRO definitely felt the pinch.

I'm long from $31. At this point, I'm not buying any more. I thought I would come this November; but "the best laid plans of mice and men ..." So while I'm not accumulating any more, it's just in my 'watch list' and I'm still way ahead on this one. Heck, with the Dividends they've paid, if we got down to $35.00 I'd still be way ahead.

Weird I looked at this post when I did. I just got back from my nightly jog. When I run, I generally use that time to sift through a lot of stuff on my mind. The markets. The wife. Spiritual goals. Just some alone time with my thoughts. When I was coming through the door after my run I was actually thinking about FRO and a cut of dividends. What's interesting it that they are paying over their projections. Their projections and goal for each year is about $6.00 per share. Which they've already topped.

Seems their management feels secure enough.

[Fredledingue]

That's what is scary.
They held the dvidend steady "not to scare investors". But they can't do that indefinetely. Already happened to me with PDS. I'll also keep FRO "on watch" for the moment.