It is like printing money in case of EFUT - I have been following the trading pattern of the shares for so many years, so this is a very safe bet. So many people are stuck in this stock and each time they report results some dumb traders add to the crowd by getting trapped. This is no exception here. The shares will close at day lows and move even lower over the next few weeks. Given that the average volume is just 7k shares I would expect the shares to be at 52-week lows below $3 going into the Q1 release. But I don't really care. I am up big time already and will cover today or tomorrow and move on.
With the majority of the business tied to just one quarter the shares lack positive catalysts near and medium term and should trend lower going into a traditionally very weak Q1. Business execution has been mixed in past quarters so I strongly advice investors to take profit or establish a short position which should pay off almost immediately. Would expect the shares to surrender all of today's gains until Friday.
new lows - doubled short position to a whopping 80k shares. Looking to cover around $3. Stop buy at $3.40 though
Anyone who is looking for a chance to exit the shares should use this great chance today. Business will remain weak going forward.
In absence of any analyst comments the stock might build momentum today but if traders don't jump in the shares should surrender most of their early gains today. Down 25 cents while writing here.
betting on stocks going into earnings isn't a smart strategy for a trader. Better wait for the facts and act accordingly. Shares are down almost 20 Cents from my entry already in afterhours
Yes - investors are simply looking at the wrong metrics here. MDR won't have much work in 2016 and liquidity will be down 25% in 2015
Of course. But the cash is still gone and they won't really need the asset given current business conditions. Without the capex FCF would have even be positive and in 2016 this elevated capex level won't repeat. But they don't have much work for 2016 on the other hand.
I thought the easy money on the short side has been already made here given the share price going into the release but a 40% after hours pop was an invitation of course
Book-to-bill for the quarter was a little above 0.5 and this in fact contained a major project award which will be difficult to repeat in any quarter of 2015.
85% of the current backlog will be completed in 2015 so there won't be much work left for 2016 and given the business environment there won't be much if any major new awards.
in fact I did just a few minutes ago - I don't think this is going to hold tomorrow once analysts point to cash flow and backlog guidance.
investors are going after the revenue and profit projections but do not get the cash burn bomb yet
as evidenced by today's action - there are millions of shares available and $3.90
why re-merging Frontline 2012 back into FRO ? They were seperated for good reason. It doesn't make sense to unwind this.
now that the only catalyst has gone there's no reason to stay long the shares. Everyone knows that there will be a few good quarters ahead but then FRO will look poor as ever. Old ships and tons of debt doesn't make a winner going forward I guess.
sure - catalysts are gone now - it was no surprise anymore that the convert will be repaid and management made it quite clear on the call that there will be a few good quarters but this won't hold forever. The shares should be avoided.