Seeking Alpha

Frontline (FRO +5.2%) is upgraded to Neutral from Sell at Goldman, which says valuation no...

Frontline (FRO +5.2%) is upgraded to Neutral from Sell at Goldman, which says valuation no longer supports a Sell rating while staying cautious on the crude tanker outlook for the next two years given supply/demand imbalance. The firm also bumps Seadrill (SDRL -0.3%) to Neutral, reflecting its positive view on day rates and deep water drilling fundamentals.
Comments (8)
  • Gee, sure glad I wasn't being guided on Seadrill by Goldman...
    I would've miss out big time. Seadrill has been one of my big winners.
    24 Aug 2012, 11:14 AM Reply Like
  • Tj, i wholeheartedly agree. I started being long SDRL over a year ago when SDRL was trading in the high $20's and i am loving it.....
    24 Aug 2012, 12:07 PM Reply Like
  • GS late to the drilling party!
    24 Aug 2012, 11:41 AM Reply Like
  • A real product and a real company! Good to see that the Norwegians cannot only operate a great engineering company such as Seadrill but also deal with their own domestic terrorist nightmare without losing sight of their own culture and rule of law... I have been long on Seadrill for sometime and bought more a month or so ago. Very happy...
    24 Aug 2012, 01:45 PM Reply Like
  • Ditto. So glad I have been in this position the past couple years and also got in initially in the mid 20's and added more later in the low 30's.
    24 Aug 2012, 02:42 PM Reply Like
  • Averaged into Sdrl at $24.64, and decided to go all in. Up over 60%
    with annual income over $55,000. Works best when treated as an
    income stock, with capitol gains secondary. The key to success is
    often the fact a stock is over looked, and under estimated, as has
    been the case with Sdrl.
    24 Aug 2012, 03:01 PM Reply Like
  • I totally agree. DM
    24 Aug 2012, 03:02 PM Reply Like
  • Weird move by GS on FRO this late. We might see a little lift in shares near term, but I still think we have years until a solid turn-around. The dividend is likely to remain suspended until at least next year.

     

    Usually releases by GS are a contrary indicator. This might be a signal that we are near a top in SDRL. I'm waiting on a market dip or correction to buy more shares.
    24 Aug 2012, 03:51 PM Reply Like
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