FRO - Frontline Ltd.

[Voodooking]

Hi folks

 

I’ve been reading Guy Spier’s book and as a result, taking more of an interest in Mohnish Pabrai.

 

One of the things that Pabrai is famous for, is making an investment in Frontline Ltd., which is a Norwegian / Bermudan tanker shipping company which owns the largest number of tankers in the world.

 

Pabrai warned in the past that the situation in which he was able to make a great deal of money on this company, would repeat itself again. I just wonder if now is a time to buy, as the stock price is very low, presumably because of the slump in the oil market at the moment.

 

However, when Pabrai bought the company in the past, he stated that it was trading well below it’s liquidation value. A quick look at the Balance Sheet now shows that the company has far more total liabilities than current assets.

 

What are people’s views on this company, has anyone analysed it, is it worthy of further consideration?

[kab60]

I believe it's low due to upcoming overcapacity among tankers (tankers have benefitted from the low pil prices), no? Another way to play this is via Shipfinance, which is another John Fredriksen Company and also has a stake in FRO (though I don't like the valuation of SF at the moment).

 

Also, FRO is only selling at a slight discount to BV. You can find dry bulk shippers selling for +80% discount (but obviously they don't make money).

[MrB]

You want to read some Diana Shipping transcripts.

[ValuePadawan]

Was wondering what everybody made of this thesis

 

- https://www.realvision.com/opportunity-in-the-covid-crude-oil-contango?utm_source=contributor&utm_medium=referral&utm_campaign=43916_HK_GH_CONT_W1_LINK

 

Could it lead to a possible 3-5 bagger in the next year or two?

 

His logic seems correct I just don't have enough background knowledge to validate his claims.

[randomep]

Hi folks

 

I’ve been reading Guy Spier’s book and as a result, taking more of an interest in Mohnish Pabrai.

 

One of the things that Pabrai is famous for, is making an investment in Frontline Ltd., which is a Norwegian / Bermudan tanker shipping company which owns the largest number of tankers in the world.

 

Pabrai warned in the past that the situation in which he was able to make a great deal of money on this company, would repeat itself again. I just wonder if now is a time to buy, as the stock price is very low, presumably because of the slump in the oil market at the moment.

 

However, when Pabrai bought the company in the past, he stated that it was trading well below it’s liquidation value. A quick look at the Balance Sheet now shows that the company has far more total liabilities than current assets.

 

What are people’s views on this company, has anyone analysed it, is it worthy of further consideration?

 

I never knew he invested in Frontline, but I know he famously spent 650k with Guy Spier to have lunch with Buffett, and milked it for more publicity than if he had spent that money on TV commericials.

 

BTW, anybody got his latest results? 

 

Anything obscure that Pabrai touches...... I would stay very far away......