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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3207  
Subject: Stirring the tanker waters Date: 2/21/2013 1:25 PM
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- NNA throws a curveball with a backstop-type offering, around 35M in new shares @ $2.85/sh to
raise ~$100M. I'm guessing a portion will be used to for debt pay-down/vessel impairment,
and some for new vessels (at least, down-payments for newbuilds)

- TNK announced results today (1/21) with the company taking a significant impairment charge.
The more intriguing item though, IMO, is the switch to a fixed dividend. That eliminates the
whole upside potential that TNK used to have when the stock price got pummeled.
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Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2829 of 3207
Subject: Re: Stirring the tanker waters Date: 2/22/2013 9:02 AM
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Think JF will be putting capital into FRO, or just let it go. Wouldn't be good for the group.

http://www.bloomberg.com/news/2013-02-22/frontline-may-lack-...

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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2830 of 3207
Subject: Re: Stirring the tanker waters Date: 2/22/2013 1:01 PM
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Couldn't open the link, so I don't know the details mentioned.

Think JF will be putting capital into FRO, or just let it go. Wouldn't be good for the group.

Depends on the time-frame.
- If FRO needs funds in 2013, I'm thinking he would consider some type of stop-gap measures.
Why? A majority of the vessels in the FRO fleet belong to SFL (22) and Frontline 2012 (10),
and Frontline 2012 hasn't started its fleet ramp-up. Somewhere along the way, Frontline 2012 will
start operations. At that stage, the stage opens and JF has a lot more options. For example,
with another chartering entity available, he could slowly migrate the SFL fleet over from
FRO. Currently, he does not have a team, other than FRO, to manage crude oil tankers.

- In mid-2014 or so, he can start building out a staff for Frontline 2012, probably including
some of the existing FRO staff. That's when the FRO entity can exit the tanker market.
The convertible bond can likely be taken care off in 2015, via an equity stake in Frontline
2012. Before then, let those bond-holders sweat through uncertainty to earn their 4.5% interest.

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Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2831 of 3207
Subject: Re: Stirring the tanker waters Date: 2/22/2013 2:33 PM
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How come I can't give a post more than one rec????

jz

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Author: wittgenstein Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2832 of 3207
Subject: Re: Stirring the tanker waters Date: 2/23/2013 2:40 PM
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Hohum:

Any thoughts on:


http://www.archerwell.com/

http://www.deepseasupply.no/

http://www.sevandrilling.com/section-8-14-sevan-drilling_in_...

??


All trade in Oslo.

I wonder if they are likely to become interesting, given interest by JF..

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Author: Hohum777 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2833 of 3207
Subject: Re: Stirring the tanker waters Date: 2/23/2013 3:04 PM
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Well, though I don't actively follow them directly, my impressions based on interactions with
other JF-backed entities (#1 & #3 with SDRL, #2 with SFL) is
#1: Has been hurting SDRL's results.
#2: Fairly steady work, just average returns on the assets
#3: Recent infusion of capital, SDRL participated. SDRL counts this as an investment, but
if these guys hint at growth, SDRL could probably acquire them. But again, there has to
be hint of growth.

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