Well, here's Frontline's ATM:
"Sales of Frontline's ordinary shares, if any, will be made by means of ordinary brokers' transactions on the New York Stock Exchange, or otherwise at market prices prevailing at the time of sale, at prices related to the prevailing market prices, or at negotiated prices."
When looking at the volume and the share price movement it looks pretty clear that the vast majority (if not all) were indeed sold using the NYSE. Actually that's what an ATM is really about, Otherwise you would use a private placement.
Billings came in just in line with guidance and the cash burn was a whopping $30 mln. I wouldn't be afraid to short the shares here. The losses make it quite clear that there will be a secondary offering before year end.
Hopefully not. The tanker market has low entry barriers and a great rate environment wil inevitably lead to more ships entering the market. Most of the current environment was caused by recent OPEC actions. If the volatility in oil prices comes down so will tanker rates.
So Frontline will use their current cash flows and the proceeds of the ATM offering to order some new tankers which will have a lower break-even point and therefore will be better prepared for tougher times. Once rates have turned south the company will be merged into Frontline2012 with very little consideration for current FRO shareholders.
The FRO2012 shares were not pledged. Banks don't want to finance ships anymore but of course they would have given Frontline the short term money to pay off the convert as they had zero risk given the possible collateral of FRO2012 shares and huge future cash flows.
He doesn't suck cash out of his own pocket as HE of course DOES NOT buy any of the news shares the company is printing.
One day in the not too distant future FRO2012 will swallow poor FRO for close to nothing and JF will be happy about the cash FRO brings with it then. Your cash.
Actually it is a pretty weak piece of work by an author new to seekingalpha. I wouldn't expect any pressure on the shares today.
That's wrong again of course. The shares are sold into the open market by the placement agent. Actually that's the difference between an ATM and a private placement...
You might end up with close to nothing as early as 2016. There's little to no value in the shares and that's why management is flooding the market with freshly printed shares each day.
And of course they are continuing to sell shares into the open market. Wait until the start of June to learn more about it.
Even for the whole month of April one out of five shares was sold by Frontline so if you think they just sold shares until the convert was paid in Mid-April you are wrong as clearly it is not possible that 2 out of 3 shares traded on the exchange were sold by Frontline during the first two weeks of April. The share price would have been much lower then.
Would expect downgrades tomorrow. Gross margins took a huge hit and the company does not expect them to improve materially for the rest of the year. Analysts will have to lower their estimates pretty significantly.
that's just plain wrong - given the strong tanker market that started in Q4 the company could have easily rolled over the upcoming debt maturity or taken on some short term bank debt secured by their stake in Frontline 2012 and already locked in cash flows from the new day rate environment. Actually they even increased their ATM placements to a new high AFTER the convert was paid back, so the share placements are solely to suck out cash out of investors pockets
Not really as in fact I have done my dd while you obviously prefer to donate your private savings to JF.
Obviously you don't know about the SFL cash sweep arrangement which will dwarf the rates earned by FRO compared to NAT. And obviously you don't know about the 25% dilution Frontline shareholders suffered from the company making excessive use of their ATM facility. They are printing around half a million new shares each day currently and selling them into the open market.
Current analyst consensus for Q1 is way too high, earnings will come in far below those estimates in fact.
Moreover company threatens to evaluate significant investments to get into new business opportunities. I guess they should first record some profits and cash flows form their core business before wasting even more money.
With an ongoing quarterly cash burn around $10-15 million there won't be much money left for any kind of investment a few quarters out.
The shares look as worthless as ever here.
Actually their EPS would be even better they more they miss out on revenues as they are actually selling their products at a loss when calculating for accompanying services.