No. of Recommendations: 1
There had been a few items that were a continuation of that post. Course, I've now forgotten
what those were-

Note to SELF: Post a sentence or mention an issue so it jogs the memory in the future.

Anyways, I should continue with new thoughts. The OP was about three weeks ago, and I
did trim the Roth stake. I blundered on SFL in Dec 2011, but 80% gains in less than 10 months
more than makes up for that. An additional bonus is that SFL has since pulled back about
12-15% since then. Since the OP, SFL have also announced a secondary offering, so there's
another temporary cause for downward price pressure.

About that, suppose its 7M shares with over-allotment, @ $16-ish, would be about $102M. In the
scheme of things, that's not a whole lot for vessel expansion. Sure, it could cover the
down-payment on a few vessels. But if FRNT is JF's tanker consolidation entity, I seriously
doubt SFL would also be pursuing new tanker vessels. The again, SFL is the catch-all JF
entity that supports other JF companies. Since FRNT is multiple sub-sectors of tankers
i.e. crude, product & LPG, I suppose it is still a possibility for a tanker purchase, but
have those vessels eventually be managed by FRNT. For instance, I read somewhere that FRNT
had recently exercised some (all??) of the LPG options.

The suddenness of the share offering kinda puzzles me. Perhaps there's a distressed sale
opportunity that has come up? But SFL was already sitting on a cash-pile, more than
was raised in the offering. So another possibility is that perhaps JF wants to shore up
the SFL dividend. One way to do this would be to add another UDW drilling asset as an
off-Balance Sheet item similar to the current three. Okay, but which one? An asset in the
recent BP-related contract? Well, one's an existing UDW asset, and the other two are newbuilds
with delivery dates in the second half of 2013. While a possibility, it isn't SDRL's style
to arrange financing that far in advance.

Completed a review of GLNG--

Now that I have lightened my JF stake in both SFL and FRO, I feel too light in my JF
holdings. GLNG is a possibility, though it is a little on the higher side of where I
would like to start a position. Can the GLNG price take off? Well, if they announced a
mid-term charter with a healthy charter rate on one of the newbuilds- maybe. Another FSRU
deal might also provide a small pop. GLNG has been slowly pulling back- split the
difference and wait for $35-ish?

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