Frontline?
Frontline has dropped from it's recent highs. It has a constant dividend but the payout amount can be volatile. CEO Fredriksen does not get a salary so his interests are aligned with shareholders. Is it too early to buy a 1/2 position as a long term holder?
Additional Information:
Mr Fredriksen does not get a salary but he is a shareholder.
Best Answer
132 points
mgspony answered 4 months ago …
I have held Frontline for 3 years, the dividends are great, even though they do go up and down. My holdings are up considerably, from the time I bought. I've also done out -of -the money covered calls on Frontline, very successful. There are more ways of making money on a stock than just waiting for it to go up, be creative in your thinking, make use of the ups and downs. This can be a real cash cow.
Gay
Answers
247 points
Market101 answered 4 months ago …
I'm not a technical analyst or anything but from what I can see it doesn't look like a real bounce just yet. Volume is just about on par with the daily average on the latest uptick, I don't think any real big buyers are here yet. And on the fundamental front, I really don't like this stock.
Its cashflows and revenue are extremely erratic. One year they have positive cash flow, the next its negative, etc. Top line revenue is also pretty volatile. It would be difficult to predict what this company would do year-to-year. I think there's probably better places to invest right now, regardless of where the CEO gets his paycheck.
Also, on that note, I haven't looked at the 10-K or the Proxy, but if the CEO is getting paid in options (they usually don't get straight equity), I could bet you good money that the options are priced WELL within the money. Meaning, he's pretty much earning a straight salary with a ton of equity upside. Look into that a bit more before you jump in with both feet.
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