Google has over 6% of of Himax preferred shares with an option to buy more in July at last years price. Does anyone here know if that's been a regular recipe for Google purchases in the past or is this something unique to Himax?
Like I said earlier, I was a long time shareholder but I'm not in it all now. I'm not short either so I don't have any benefit from this one way or the other. Since I don't have any position in this company I haven't kept up on what they've been doing.
That said, while my lunch was heating up, I pulled their last quarterly report up for a peek. Last quarter they posted shareholder value at a negative 27 million dollars. The previous quarter it was a negative 55 million. They way they bridged that gap wasn't by an increase revenue. They did so by issueing $40 million in stock and authorized another $60 million.
There are far better companies to invest in than this one.
This is off of your Zacks article;
"Current Quarter Estimates for FRO
In the past 30 days, 4 estimates have gone higher for Frontline while no estimate moved lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from loss of 5 cents a share 30 days ago, to loss of 2 cents today, a move of 60.0%.
Current Year Estimates for FRO
Meanwhile, Frontline’s current year figures are also looking quite promising, with 4 estimates moving higher in the past month, compared to no estimate moving lower. The consensus estimate trend has also seen a boost for this time frame, narrowing from loss of 83 cents per share 30 days ago to loss of 71 cents per share today, an improvement of 14.5%."
The idea that losing less can be considered "earnings" is a funny one. Under normal circumstances a company can muddle along until the market turns. Unfortunately for FRO they have a guillotine hanging over their head in a bond coming due this time next year. Also, I just pulled up the most recnt Gibsons Tanker Report and the Middle East going West route is down to 25WS. Frontline is not only running out of cash but time as well.
If you're sold on Frontline as a company, that's fine but I HIGHLY suggest waiting to invest until the bond issue is clarified.
And we have ships in the Med.
So here's the deal as I see this.
-Opponents of Obama are screaming mad that there weren't any resources available to respond to a snap attack on an embassy in Lybia.
-These same folks say that we should support our friends and provide world wide leadership.
- Here is a case where we helped our friends (Lybia and Cyprus), punished a country that we are technically still at war with (North Korea), provided leadership in stemming piracy and did so with no loss of life at a minimal cost.
This is low hanging fruit and still, you complain. Even you've out done your moniker.
Cash? No. At best it's less debt and that's a stretch.
I was a long time shareholder and I've been out for awhile now.
I think the best that can happen for this stock, and it isn't worth my money on the chance of this happening, is geo-political. I only came back on this board yesterday and you've posted a number of times that off topic subjects don't matter to shareholders in this company. My opinion is there are times when they do and this is one of them. If the US wants to make a bigger splash on penalties to Russia regarding the Ukraine, the fastest way to do that is to allow petroleum exports from the US. More supply will reduce price and Russia is a one trick pony. Venezuela is as well. Under normal circumstances I think that exporting petroleum is a colosally stupid idea. These aren't normal circumstances.
I recall a conversation we had a few months back regarding VLCCF. I also recall some folks who held the stock (Not you but others) not knowing that, despite the name, they held absolutely no tankers in their fleet.
Like you, I also believe that JF is an assute business man. The thing is with a deal this I would be wondering what the point would be. If JF already is the principal in all of the companies involved it's seems to me as it's an excersize in rearranging the furniture.
Loyalty has stages with most people. Who do you think he's going to be more loyal to? Himself? His family trust (Karapasian) or nameless faceless shareholders?
"...Frontline 2012, in which Frontline Ltd. (NYSE: FRO) has a stake..." What's the stake? If I were still a shareholder I would know.
"...it was a smart move by JF!" Since all 4 companies involved (FRO2012, FRO, VLCCF & Karpasia) are all JF entities, I'm sure that it is a smart move... for JF.
FRO has a negative asset value and has a habit of losing most it's market cap on a regular basis. It's a basket case and will continue to be so until the debt is dealt with next Spring. This isn't a value stock as there's nothing of value. If I recall this correctly, they don't even own the ships in their fleet. They lease them which means this is service/management company more than anything else.
Last I heard FRO only owned 6% of 2012. Is that the same? If so then this deal doesn't affect FRO much at all. Considering these ships are being sold at discount that might not be a bad thing.
"Knightsbridge Tankers Limited (Nasdaq: VLCCF) ("Knightsbridge") and Frontline 2012 Ltd. ("Frontline 2012") today announced that they and Karpasia Shipping Inc (Karpasia), a company controlled by a trust established by John Fredriksen for the benefit of his immediate family have agreed for Knightsbridge to acquire five fuel efficient 180,000 DWT Capesize bulk carrier newbuildings from Frontline 2012 and one Capesize bulk carrier built in 2013 from Karpasia. The newbuildings were ordered by Frontline 2012 from Shanghai Waigaoqiao Shipbuilding Company Limited in China and have expected deliveries of between May 2014 and September 2014.
Knightsbridge has agreed to pay $61 million for each of the five Capesize newbuildings and $55 million for the Capesize built in 2013. Of the total consideration of $360 million, $186 million will be paid in shares of Knightsbridge at $10 per share, $150 million in absorption of remaining newbuilding capex and $24 million in cash. Accordingly, Knightsbridge has agreed to issue 15.5 million shares to Frontline 2012 and 3.1 million shares to Karpasia, or another company controlled by trusts established by John Fredriksen for the benefit of his immediate family, on closing of the transaction. Knightsbridge will seek to raise around $30 million in bank debt per vessel. The transaction is subject to execution of definitive documentation and normal closing conditions. Cont..."
Via VLCCF website
For what this is worth, when I owned FRO I also owned an equal number of shares in SFL. For the simple reason that virtually all of FROs profits went to pay off their lifeline agreement to SFL. SFL in turn paid/pays a fairly decent dividend so there was at least some gain on owning FRO with a chance at growth.
Just some food for thought. Make sure that you do your own DD.
I'm afraid this is sort of a cameo appearance. I've been out of shipping all together for a while. FRO continues to be a curiosity though. The fundamentals on this company are horrible. The outlook isn't much better and yet the stock continues to be bouyed. I just read where they sold off their Capesize newbuilds at what I suspect was a steep discount.
If I get back to thinking about owning FRO, I would have to find some good news regarding FRO2012 and the bond issue. Like I said earlier, I'm not in any shipping stocks currently so some of this news may already out there but that's where I would start. Good luck.
Of the four people killed in the Bengazi attack, two were former SEALs responding.
Let's not forget the Maersk Alabama, Jessica Buchanan or bin Laden.
I'm more than a little surprised that no one on this board, an oil tanker company board, has anything to say regarding the Navy taking control of a rogue oil tanker out side of Cyprus.
When I was working in the refining industry in California there was a huge debate on selenium in our water. The state passed a ordinance on our selenium levels in our water output. This created some enormous headaches for us because selenium isn't a byproduct of refining. Still, we looked into what it would take to separate out selenium from our effluent. What we found was we would triple the amount of hazardous materials in the process. Once we had that info in hand we let the lawyers take over. Eventually the state came to their senses and recinded that ordinance. They ended up surveying where the source was coming from. What they found was it was fertilizer run off getting into the water shed.
A couple of other things that I found interesting in that report was the number source of water pollution in California at the time, by a large margin, were dairy farms. The number usage of water was for alfalafa. Now this report was awhile ago so I'm sure things different today but I'm willing to bet that most folks would agree that limiting water to alfalfa producers would be preferable to whole cities going dry.
Yeah, collecting rain water being illegal is news to me. Just how would that get enforced anyway?
By the way, pretty much everything on the I-5/99 corridor South of Fresno imports water. One of the reasons is that if they sink a well they strike oil.
I find it telling that if you drive either highway South from Sacramento, in the Northen regions you'll see billboards blasting Democrats for exporting water South. As you get further South you see billboards blasting Democrats for limiting water supplies.
Yes, we know about wells in California. The problem for most folks, including municipalities, is that owning property doesn't mean that you own water or mineral rights. As an individual you may get away with sinking a well for garden and household use. A larger operation however is going to be really taking a risk legally as a well would be rightly considered theft.
There are going to have be some tough decisions to make out here. Water is available but priorities need to be set and that's going to #$%$ folks off. Food prices are going up across the nation. Some crops, like orchards, will end up going fallow and take years to recover. I was talking to a guy last month who shipped his entire cattle herd to Nebraska because his water source was already dry.