Excerpt
As a result of the delivery of the third and the fourth heavy lift vessels to Dockwise, Frontline expects a net cash generation of approximately $28 million in the second and third quarter of 2008, which will enhance the dividend capacity, and expects to record a gain of approximately $105 million, including deferred gain related to the transaction, in the second quarter of 2008.
http://biz.yahoo.com/iw/080702/0412400.html
With this tough environment, the security of the dividend is heaven. There still is a chance of a flight from security, taking down the stock. But that is a mistake! With a current P/E of only 8, almost a 3rd of the S&P, this stock is CHEAP.
I called this pullback, the flight from quality, a couple of days ago when the stock was at $70.60.
Even with the possibility of this flight, I think the stock is a buy here @ $67.35
I will do some more research on why some of the numbers are LOWER for next year.
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