Seadrill, Golar, Knightsbridge Tankers, Frontline, SFL & Others

By qwa2, September 11, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

I have a smaller than I would like position in Seadrill that I opened last year (thank you Travis), but had no idea until reading the article (link given below) in Bloomberg about the host of interconnected companies that Fredricksen seems behind. I can tell from the personal portfolio section that Travis has a position in Golar… does anyone have insights into any of the other companies? On the surface, the tanker business looks terrible at the moment (is this opportunity or disaster lurking?), but SFL (Ship Finance International) with a near 9% dividend yield looks appealing (FYI, I think needs to bought tomorrow (9/11/12) to get the next distribution). Does anyone have any knowledge about Frontline and whether the splitting of the company in 2 pieces has been at the expense of common stock holders? Again, this is a completely new area to me so all insights are appreciated.

Other companies include: Golden Ocean, Golar LNG Partners, International Tankers Corp LTD

http://www.bloomberg.com/news/2012-09-09/ship-magnate-uses-gut-in-11-billion-bet-worst-since-70s-ending.html

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1 Comment on " Seadrill, Golar, Knightsbridge Tankers, Frontline, SFL & Others"

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Travis Johnson, Stock Gumshoe
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September 11, 2012 10:40 am
Lots of overcapacity in both bulker (golden ocean) and tanker businesses right now, from what I can tell — and since Ship Finance largely owns vessels of those types (though they own at least one Seadrill rig, too), their future profitability depends on Frontline and Golden Ocean also doing better at some point (or at least, not going bankrupt). I’ve owned many but not all of those companies, but haven’t had any interest in the tanker or bulker businesses lately — these are commodity businesses now for the most part, Frontline did extraordinarily well because they got out ahead of… Read more »
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