FourBrane

World Wrestling Entertainment, Frontline: High Yield Dividend Payers

I've held FRO for years and have no inclination to sell at any price. True, my shares are "free" since the steady dividends have paid back my entire purchase price, but that's not why I'm holding. I'm holding because time and time again I've seen John Fredrikson and his talented managers at Frontline pull profits out of a hat. These guys know more about making money in this business than anyone else in the world. Do your due diligence, folks. Read all FRO's news releases over the years and you'll be watching some masterful businessmen in action. Be sure to pay attention to alll the "extra" stuff they own (and which may get spun off to create more dividend bonanzas). I've never seen anything else like it.

Deutsche Treat - Cramer's Lightning Round (5/6/08)

Asking Cramer to consider all the facts about a company or sector is like explaining the facts of gravity to Wily Coyote or asking him to stop buying stuff from Acme. If you were successful, the show would be no fun. And, remember, it's called "Lightning Round," not "Thoughtful Opinion."
The only reason to pay any attention to Cramer is because he can occasionally move small stocks, creating buying or shorting opportunities to sheer some fleece off the sheep.

The Short Case On Frontline

At least 15 percent of the float is out short right now, so there's a growing squeeze risk. FRO is almost certain to keep paying at or above its target dividend of $2.50 per year (either in cash or in stock), so that's a steady 7 percent drain built in. FRO's breakeven rates are so low that I cannot see how they could fail to hit that target, plus there is a threat that more SFL shares will be spun off (FRO has declared those holding to be "non-core"). Look at FRO's history of paying generous dividends (dictated by its majority owner who has a serious track record of demanding a sweet dividend return) and remember that your position will be charged for every dividend.

If you shorted on Nov 6th, as per anonymous' recommendation, you're going under water unless you cover before Dec 7th. Next quarter, you'll be dinged another $1.50 per share, and so on.

I don't understand people who short without considering the dividends and the clear history of a company.