Investopedia: 2011 In Review - Shipping Hit The Iceberg

What more is there to say about the state of the shipping industry for 2011 beyond words like "yuck," "blech", and "please make it stop"? Rates for all manner of ships plunged throughout the year, sometimes sinking below the daily operating costs of even the efficient operators. Clearly, an industry in which companies can't even charge enough to pay their operating costs is one that's in difficult shape, so the stock market carnage seen in this sector during the year is not exactly surprising.


Shipping was not actually the worst-performing sector this year (thanks solar, coal and banks), but a worse-than 20% drop for the sector is certainly bad enough. (For related reading, see Warning Signs Of A Company In Trouble.)

Yes Virginia, There Were Some Winners
Against a terrible backdrop, there actually were some notable winners this year - proof positive yet again that a lotus can still bloom in even the funkiest pit.


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http://stocks.investopedia.com/stock-analysis/2011/2011-In-Review--Shipping-Hit-The-Iceberg-GLNG-KEX-FRO-DRYS-TK-DSX-SSW1215.aspx

Investopedia: Frontline Lives On, But At What Cost?

There was no question that the company had to do something, but Frontline (NYSE:FRO) has taken a pretty interesting path in its restructuring. Although the chances of Frontline going out of business due to liquidity pressures are now much lower, it is an open question as to how upside remains left with the publicly-traded remainder and who really benefits the most from this somewhat convoluted transaction. (For related reading, check out Understanding Financial Liquidity.)

 

From One to Two  

Frontline was founded in the mid-1980s by John Fredriksen in response to a terrible market for oil tankers. Yet another terrible tanker market, a market wherein rates have frequently been at or below cash operating costs, will now fundamentally change this company going forward.

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http://stocks.investopedia.com/stock-analysis/2011/Frontline-Lives-On-But-At-What-Cost-FRO-SFL-NAT-DSX1207.aspx