Good question, so remember what is said...... INVESTORS AND SECURITY HOLDERS OF FRONTLINE 2012 AND FRONTLINE ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
The word a few months back was that a merger wouldn't be beneficial for current FRO shareholders, lets see what happens, I hold many shares, and mergers can be tricky.
So what is going to take them to $10? $100? $1000??? The dry bulk sector is still dead, the tanker sector is over flooded, more ships than needed with all shippers combined. Stocks don't climb on nothing. Yesterday looked like a short squeeze.
A little each day just like it has been doing. No news, low volume, nothing to support the pps since the R/S. The idea of the R/S was to keep it above $1 for a while. Unless FREE announces something big to catch the attention of buyers, the shorts will bring it down.
For starters, the price of gold doesn't go up for no reason at all. Its usually a good fear factor play when something bad happens. I wouldn't count on seeing $13 anytime in the near or distant future, but you will make money at these current prices. Your best bet is buying gold itself, not so much gold stocks.
The question is, how would it effect current shareholders? Mergers aren't always beneficial to everyone.
rogere, Morgan Stanley put a $3 price tag on this stock, so yes, $3 or even $3,50 is fair value for now. Rates will be a factor for sure. I'm just saying for these posters who really want this stock to run, its not going to happen anytime soon. Then there is the use of the ATM, will it ever stop?
Like I said before, you won't see a chance of anything significant until the next earnings report. Unless FRO announces something big, its regular day trading for a while.
Unless FRO announces something big before there next earnings, you will see plenty of those dips. Until then its plain day trading.
You also have to take into consideration that rates aren't usually high this time of year. FRO will survive, its a long play for all shippers.
From my experience with mergers, takeovers, they let you know that something is in the works. After that, they get quiet and silent for weeks or even months. Then you wake up one morning and SURPRISE, they announce it.
Thats not why the stock is down....lol If that were the case, you wouldn't have seen the spike at earnings. The stock is down because the price of gold is down.
I think Morgan Stanley got it right on target. For the time being, this is a $3 stock.