Frontline (FRO)

I am a big fan of oil tanker stocks so wanted to point out a few areas t...

Suggestion by Tim Plaehn on 2008-01-07 16:45:55

I am a big fan of oil tanker stocks so wanted to point out a few areas this article could be clarified. Oil tankers are leased our either on time charters or the spot market. FRO leases primarily to spot market customers. A description and pros and cons of the two types of leasing would be informative to the prospective investor. Also, where the competitors lease their ships, time charter or spot. Next, FRO started selling of Ship Finance (SFL) in 2004 and currently owns less than 1% of the company. FRO however does lease many of their vessels from SFL on long term contracts. Finally, no discussion of tanker stocks, especially FRO, is complete without mentioning (in depth!) their dividend policy. Several tanker companies, including FRO, pay out the majority of their profits as dividends. The dividends tend to be a large percentage of the stock's return and can fluctuate significantly along with the spot tanker market.

Add comments or discussion related to this suggestion here.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.