Lee 99

Shipping Stocks: I'd Wait To Buy Frontline and Overseas

if more corps were ran like JF's the dow would be at 25000. The typical weenie ceo gets a big boost even if the stock tanks. Hardly a good business model, IMO.
FRO will hitting 40 may not be that good a bet as it has a lot of visibility these days as opposed to 4 yrs ago.
I've been long FRO for about 5 yrs and have been amply rewarded. other JF cos like Seadrill, golden ocean and ship finanace are also based on the high div model and have been behaving similarly.
the PE was low for quite some time, but the stock was paying out high teen bucks per year w/ the spinoffs. Analysts were really down on it, like the Citi guy. I don't think he ever got it right. Still hasn't.
JF is looking to do a 5:1 split some time in the future increasing shares held by co from 125 mil to 625. Not sure what the motive is, but it should be interesting. Currently 74 mil in circulation w/ JF owning 34 mil or so.
Time to stop rambling. They say don't fall in love with a stock, but this one is hard not to.