Gentlemen (and Ladies too):
Occasionally saw my old friend - FRO - webpage, and was thrilled by its bad standing. I used it a lot many years ago - maybe 5 or 10 - and remember fat dividends well above 10% - something like occasional $5-10 per share distribution.
Sic transit gloria mundi! - not sure my latin is correct.
I hope this blog has some gurus - please explain what happened? Hungry daughter SFL killed the parent company, or what? And what, do you think, is in the future?
Nothing to do with SFL, everything to do with an oversupply of tanker ships. Google VLCC day rates or similar- many ship owners are operating well below break-even. FRO has taken it hard, but not as hard as some!
Mr. Shores in other words supply and demand at an unbalanced stage on the supply side. Prices will remain depressed until the supply side either finds balance or the supply side improves. Both it seems are in the future and only the strong may be around to see that balance. I think because of Mr. F FRO will have a role in that just not sure how much and in what shape.
On the short term gamble FRO may look worth a gamble if it goes below 3.20 to sell for a 10% return but not too good risk to reward for a gamble eh?