Frontline's earnings call sent its stock up over 25% (Part 1 of 5)
Company earnings presentations
Company earnings call presentations are a valuable resource that investors can use to learn about recent performance and development as well as what managers have to say about the market and its business outlook.
Crude tankers lagged performance
Everybody knows crude tankers, which are vessels used to transport crude oil across the ocean, have lagged the market (SPY) over the past few years—including 2013. Lower U.S. oil imports and excess supply growth had negatively affected rates, driving the share prices of companies like Frontline Ltd. (FRO), Nordic American Tankers Ltd. (NAT), Tsakos Energy Navigation Ltd. (TNP), and Teekay Tankers Ltd. (TNK) down more than 70%.
Frontline Ltd. (FRO) rallies
But since reporting its third quarter results on the morning of November 27, 2013, Frontline Ltd. (FRO) has rallied more than 25%. It rallied about 11% on November 27, followed by another 11% on the day after the Thanksgiving holiday. Because Frontline Ltd. (FRO) is a major player in the crude tanker business, with 46 vessels operating, the company’s calls should be read by investors who currently hold positions or are thinking of opening positions in crude tanker stocks or ETFs like the Guggenheim Shipping ETF (SEA).
In this series, we’ll investigate key points that investors should take away from the company’s earnings call presentation and why the market had rallied after the news.
Browse this series on Market Realist: