Frontline Ltd $ 7.51 -0.04 (-0.53%)
FRO News and Headlines - Frontline
According to the GuruFocus All-in-One Screener, a Premium feature, the following guru-owned stocks have outperformed the S&P 500 Index over the past 12 months as of April 27.
Euronav NV (EURN) has a market cap of $2.35 billion. It has outperformed the S&P 500 by 22.67% over the past year.
Shares are trading with a price-book ratio of 1.04. According to the DCF calculator, the stock is overpriced by 103% at $11.3. As of Monday, the share price was 56.73% above the 52-week low and 14.46% below the 52-week high.
The company, which operates a fleet of
In times of market volatility, investors should be aware of the difference between risk and uncertainty. Risk and uncertainty are two different concepts, but investors often confuse the two.
However, the difference between risk and uncertainty is not clear-cut, which is why so many investors tend to make a mistake when trying to distinguish between them.
In investing, risk can be defined as being the chance of permanent capital impairment. Meanwhile, uncertainty can be defined as not knowing what the future holds, i.e., a wide range of possible outcomes.
A company can have a lot of uncertainty, but little risk.
Horizon Kinetics LLC is a value investing shop lead by Murray Stahl (Trades, Portfolio) and Steven Bregman. The firm employs a true long-term and contrarian investment philosophy. They put out some of the most original and interesting research I’ve come across. In their second-quarter commentary, they highlighted a pocket within this overvalued market they find highly compelling: the shipping industry. As true contrarians they like because it sucks:
"Ocean shipping has its own business cycle, which is not coincident with the U.S. business cycle. In a depression since 2008, it is
A few weeks ago, I covered a lecture Mohnish Pabrai gave at the Guanghua School of Management in what was the first value investing course ever to be held in China two years ago.
The talk focused on Pabrai's process for finding 100-baggers, stocks that have the potential to increase in value 100 times -- the rare birds of the investing world.
In the lecture, Pabrai outlined the five different types of stocks he believed were the best placed to achieve this goal. This list included:
- Companies that can be run by idiots.
- Companies that cannot be run
I’ve been quite interested in investing in shipping over the years. Currently shipping rates are very low and shipping stocks depressed. Meanwhile the S&P 500 is at all-time highs. Shipping stocks are not as correlated to the broader market because they respond to shipping rates specifically and not so much to the general economic outlook. Now is a perfect time to look more closely at shipping stocks and get some solid diversification.
Unfortunately, shipping is a very asset-intensive industry and it takes a tremendous amount of time to determine the value of each company's fleet. Especially as there are something
Ship Finance International Ltd. (SFL), the $1.4 billion Bermuda-based shipping and ports company, reported 17.6% year-over-year revenue reduction to $96.9 million and a disappointing 31% drop in profits to $32.3 million in the first quarter – a 33.3% margin compared to 39.8% in the same period last year.
Despite having lower operating expenses, Ship Finance recorded lower results in associate and interest income while having an overall increase of $3.86 million in interest expenses resulting in lower profits in the period.
"Ship Finance continues to take steps to strengthen its balance sheet and diversify its contracted
The $993.4 million shipping and ports company reported its first-quarter 2017 results in May. The Bermuda-based Frontline Ltd. registered a 22% revenue drop to $177 million and a more severe 66% drop in profits to $27 million—with a 15.3% margin compared to 34.7% in the year-prior period.
Operating expenses have climbed 26% year over year, therefore leading to far less profits in the recent period. As observed, the company recorded 55% increase in voyage expenses and commission and added a $21.2 million in investment impairment loss in relation to four vessels leased from Ship Finance.
Frontline expects to record another
During the first decade of the new millennium, the shipping sector was what can only be described as a goldmine. The rise of China as a global trading superpower, an aging fleet and easy access to credit allowed shipping companies around the world to expand rapidly, plowing billions into new vessels that were quickly snapped up on trading routes. The rising demand for transportation capacity also sent spot rates for vessel charters skyrocketing, improving the economics of shippers and making it look as if their rapid expansion was the right course of action. However, the financial crisis exposed these companies
On valuation alone, the global shipping sector is probably the most attractive industry on the entire market. The dry bulk, tanker and box shipping industries are full of companies trading at a double-digit discount to net asset values.
For example, shares in companies such as Teekay LNG Partners (TGP), Frontline Ltd. (FRO), Euronav NV (EURN), Seaspan (SSW), Teekay Offshore (TOO), Costamare (CMRE), Navigator Holdings (NVGS), Diana Shipping (DSX), Safe Bulkers (SB), DryShips (DRYS), Scorpio Bulkers (SALT) and TOP Ships (TOPS) all trade at an average price-book (P/B) of less than 0.5. Such a discount implies an upside of 100% if
Frontline’s (FRO) gross profit margin was lower than desirable reaching the 26.96% mark. Despite the gross profit margin’s mixed results, Frontline’s net profit margin of -9.60% is significantly lower than the industry average.
Frontline closed out last Wednesday with their stocks being valued at $2.41, a gain of 1.26% with an ROI of -6.20%. The stock traded at a volume of 2,226,975 shares. The stock’s quarterly performance was -17.18% with its 52-week low hitting 104.24%. The stock’s performance in May hit a -18.86% profit margin. It is expected to be a fast-moving stock in the shipping industry with an EPS
Ship Finance International (SFL) is an international ship owning and chartering company, with a fleet size of 70 vessels and rigs in its asset portfolio as of September 2014. The company's assets include oil tankers, dry bulk carriers, jack-ups and ultra-deep-water rigs. Ship Finance International earns its major revenue share from chartering of assets primarily under medium- to long-term bareboat or time charters.
Going by the industry experts, Ship Finance International is a stock to stay invested in, which currently doles out a quarterly dividend payout of $0.41 per share and a dividend yield of 9.8%
Complete Pabrai Funds Annual Meeting Notes: September 10, 2011, in ChicagoNote: A recorder wasn't used and therefore the following is a summary of what he said rather than an exact transcript. [b]Prepared Comments:[/b] $100,000 invested in June of 2000 would be $554,600 today. This is an annualized return of 17.3% since 2000 vs. 1.1% over the same period for the S&P 500. Assets under management: $580 million A few past ideas: International Coal Group: Purchased in February 2010 at $4.3 Sold April 2011 at $10.30 138% return in slightly over 1 year Wilbur Ross founded the company and sought