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UnknownUnicorn4700255
May 19, 2020 7:30 AM

Solid fundamentals for Frontline after being oversold Long

NYSE:FRO120
Frontline PlcNYSE

Description

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Many people thought that the tankers business would suffer, but it's the opposite that happened, because tankers not only deliver oil relatively to a global oil demand (that suffered for sure), but they also STORE. And this is not free.
Companies like Frontline were payed to store the global surplus:
seatrade-maritime.com/tankers/awful-energy-day…unless-you-are-tanker-owner
cnbc.com/2020/04/24/we-are-making-a-lot-of-money-at-this-time-nordic-american-tankers-ceo-says.html


On the other side, we have some encouraging data regarding the demand for tankers:
seatrade-maritime.com/tankers/tanker-market-surge-time-its-real-frontline-ceo

All of this explains the big surge in volatility and volume these last months, and ups and down that were about 40%!

Comment

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No financial advice given here

Comment

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(talking about "surplus" in the context of COVID-19 oil demand crisis)*
(19/05/2020)
Trend AnalysisFundamental Analysis
Comments
BruceMacho
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but why did NAT drop so much after their earnings call. it seems like thats the trend with tankers as of lately
mycoinmoon
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@BruceMacho, its rediculous. .70 dividend for the Quarter, that's almost 10% at current share price! This is going to pop. It needs to make up about $2 just to be semi-reasonable.In my opinion of course
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