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Frontline (FRO +15.8%) shares are surging, perhaps related to bullish analyst comments on...

Frontline (FRO +15.8%) shares are surging, perhaps related to bullish analyst comments on rallying VLCC spot rates. FRO has "the most exposure to spot VLCCs and are in line to benefit from these improving rates," Dahlman Rose writes; considering OSG's bankruptcy filing, investors should buy FRO, "especially since it is in a good financial position after its restructuring."
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Comments (2)
  • Herr Hansa
    , contributor
    Comments (3084) | Send Message
     
    I think the better analysis of Frontline (FRO) is that the company made moves last year to restructure, and now they are in a better position than their competitors. Even with that aspect, there is an oversupply of tankers, and it will be a while before we see a lasting recovery.

     

    Disclosure: long FRO
    14 Nov 2012, 02:27 PM Reply Like
  • Hohum
    , contributor
    Comments (310) | Send Message
     
    I agree. Restructuring FRO in Dec 2011 and creating two separate entities gave Fredriksen more flexibility. The move allowed Frontline to create entities with different risk profiles and debt obligations.
    14 Nov 2012, 08:02 PM Reply Like
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