Frontline (FRO) Sinks to $59.75

I am continually doing more research on FRO and I keep on finding many positives.

For instance, the Baltic Dry Index (BDI) (along with spot rates) is up today.

Dry bulking shipping refers to the shipping of raw materials such as iron ore, coal, and grains. All hot commodities.

FRO also owns tankers to transport oil from from the Middle East.

To me, this company seems to be in the hot spot and has continuously (over years) operated brilliantly - rewarding its shareholders with large dividends. This consistent operating performance may result in an outlook upgrade from Standard and Poor's.

S&P reviews Frontier Oil for possible upgrade
Monday June 30, 2:22 pm ET

S&P places Frontier Oil on review for possible upgrade, citing low debt and stable performance

NEW YORK (AP) -- Standard & Poor's Ratings Services on Monday placed the ratings of oil refiner Frontier Oil Corp. on review for possible upgrade, citing the oil refiner's low debt and consistent operating performance.

The ratings service placed Frontier Oil on CreditWatch with positive implications, meaning it has a one in two chance of being upgraded in the next three months.

S&P currently has a corporate credit rating of "BB-" for Frontier.

Frontier shares fell 77 cents to $70.47 in afternoon trading.

http://biz.yahoo.com/ap/080630/frontier_oil_s_p.html?.v=1

I don't see this changing anytime soon.

FRO seems to have sold off with the rest of the commodities but its income doesn't depend on the supply and demand of commodities but the S/D of shippers. Unfortunately, there seems to the a report increase in shippers but I will argue that record demand and stricter regulations (for oil tankers) require newer ships.

I am still bullish on FRO at this price.