I was trying total up debts from the FRO2012 new builds and all off their private placements. Quite frankly it felt like my weekend hangover was starting early so I stopped.
I do have some food for thought on this. FRO2012 had earnings of 95 cents a share last year. Using the 2.55 shares per stated in the press release this would put the assumed value per share at around $6.22. That gives FRO2012 a P/E ratio around 6.5. Now this doesn't include one offs which I suspect are a factor but it does put things into some perspective.
I also compared this P/E to NAT (P/E of 97) and FRO (no E of the P/E) so this doesn't appear to be a horrible deal to me. If anyone finds fault in this feel free to let me know.
Have a safe Independance Day!!
The Frontline website has presentations for Frontline 2012. They've posted their break even rates for all 4 types of tankers.
What I couldn't find was their debt load. Has anybody else found that?
Yeah, I got that. It's yet another dilution for FRO shareholders to acquire FRO2012. The question that I have is how healthy is FRO2012? To butcher an old analogy, I'm less worried about the lipstick and more worried about the size of the pig.
Have any of you had an opportunity to look at FRO2012 financials? Their shares trade over the counter in Oslo so I assume their book is out there someplace.
I suppose that everything in this guys hardware store is specialized?
I don't subscribe to any publications either. Unless you're a trader, it's a waste of money. I used to work the downstream side (Refineries and terminals) of the oil indusrty for about 30 years so I'll get e-mails from folks from time to time.
Another way is kind of a positive from a negative in that due to cookies on my browser Yahoo will feed stories to me that they think will hold my interest. Lol, some times that can sort of insulting. As an example, "Shia LaBeouf wows the Internet with his freestyle rapping skills" is on my home page at the moment. Who is Shia LaBeouf and isn't freestyle rapping just talking? Also, and I can't stress this enough, why would any body care?
There are some changes to shipping routes that will be helping all shippers, including FRO. The Suez canal has opened up a second lane, the third pass on the Panama Canal is filling as I write this and Iran is going to be building an oil terminal on the Caspian Sea, to name a few. Looking forward, I think, the Suezmax fleet is going to be the preferred ship of choice, taking into consideration all 3 of examples I've given above and other newer shalow ports. The VLCCs will be slow moving storage in markets that are older established ports and compete against pipelines.
Mind you that's just my take. I could be completely off base.
Iran and the new ships coming on line are a concern but not my biggest. I've been reading about quite a few ships being filled and set on their routes without a buyer yet. Some of this has always been the case but my impression is that it's happening more often. Producers are pushing oil out the door as fast as can without any discipline. In the short term this is great for shippers but if it continues there will be a price to pay by the entire oil industry.
I suspect that soon we will be hearing about port offload backloads. If that happens the demurrage costs will force the hands of traders and producers which then affect shippers. However, that's going to be some time away. In the short to medium term things are looking good for shippers.
The problem that FRO has at the moment is the biggest current play, and it's almost obscene, is in Aframax market. FRO doesn't have any so they aren't really a favored player at the moment.
Shirley Mcclain told me that I was once royal prince so, to quote Carl Spackler from a Harold Ramis documentary, "I've always got that going for me!"
From Charles Weber;
“VLCC Activity in the VLCC market was somewhat more subdued this week; the Middle East fixture tally was off by 12% w/w with 29 fixtures and the West Africa tally was off by 63% with just three fixtures. The slower pace was compounded by the appearance of fresh units and uncertainty over the extent of the July Middle East program, leading to softer rates throughout much of the week – and a sharper drop at the end of the week. The AG/EAST benchmark route, which ended last week at a one month high of ws72.5 posted incremental losses to the ws68 level by midweek, before a spate of fixtures done at markedly lower rates saw the assessment drop to ws61″.
"People who follow Christ will be persecuted."
Yeah. As a devote agnostic, that's all I could think about last December when I was standing in line at the local Apple store to get a part for my computer. Christians are so persecuted they need to celebrate their holidays in complete secrecy.
"What are we to conclude from this? That all bakers will be forced to provide specialized services to all would-be-purchasers? Will they be compelled to service wiccan or skin-head / Nahhtssi or other celebratory festivities, too,."
The simple answer is Yes. If you have a business you don't get to discriminate. A longer answer is more complicated and involves both parties. If you're in a business and don't want a particular customer raise your prices for that particular job outside of what is competitive. If you're a customer, especially with food for crying out loud, don't hire some one that isn't on board with what you want done. This isn't a difficult concept. If you want to only bake cakes for an isolated group of people start a bakers club, not a business. This works for golf courses. I don't see why it can't work with bakeries.
I'm not going to start anti-preaching like Lake does. I have to say that I think you're over reacting. You can believe what ever you want to. Just like everybody else as long as they treat each other with dignity and respect.
Mr. or Mrs. Truth,
No, I just don't agree. The whole conversation has to do with some people insisting that "freedom" involves telling people that they know what's best for others. The example that's continually given is of a baker that doesn't want to make a cake for a gay wedding. I find this example absurd. If it were me, I wouldn't want any one making my food that had a grudge with me for any reason but how often do people buy wedding cakes? What happens if you follow this same argument out to things you buy every day, like gas or groceries. Tell me how you would react if you were denied service at a Pharmacy because of your religion or who your parents were or if you were a Packer fan.... Ok, that last one doesn't count. Discrimination against Packer fans must be in the constitution some place but you get my point.