Have had several JF companies (FRO, SFL, SDRL) for the rich yields.
Looking at the income statement and cash flow for this company (Yahoo lists the payout ratio as over 9000%), can I assume that the main reason for the big appreciation in the stock price is for future prospects and not current revenue generation?
The stock is trading at a big multiple to book value and given current nearterm income growth, its valuation by the market puzzles me.
Another poster listed the div for the MLP (GMLP), as 38 cents. That would give a yield of about 5.5% for GMLP. For an MLP, that's average. SDRL, not an MLP and with a longer track record, but with great future prospects for business yields over 8 percent. (Golden Ocean, another JF company, yields over 13 percent).
The question is, what entry point is good valuation of purchase of GLNG?
"Golar LNG Limited (GLNG) is a liquefied natural gas company with headquarters in Bermuda. In addition to the factors in our screen, another reason to be cautious of this company is in terms of management effectiveness: According to Reuters, Golar’s figures for Return on Assets, Return on Equity, and Return on Investment all pale in comparison with the industry average. Two other considerations that are noteworthy: Analysts have been trimming their EPS estimates. That is of particular concern, given that the company has a history of missing estimates."