Topic: Frontline throws down the glove with GenMar

[Jack Morris]

http://finance.yahoo.com/q?s=FRO

Read Frontline Q4 profit jumps on higher shipping rates

CFO Tom Jebson states "If there ever was a merger with any sense in it, then a merger between Genmar would be it. There are big synergies to be found by the two companies, especially since Genmar has BIGGER ADMINISTRATION COSTS, though it's fleet is only HALF the size of Frontline's."

Now, we already know Frontline is around the same priceline as Genmar, BUT (there is always a but), look at what Genmar pays dividendwise vs FRO's 26%-27%.

http://finance.yahoo.com/q?s=GMR

M/fers deleted it, but look at EPS, FRO earns 13.88 per share vs GMR's 8.32. In other words, NO COMPETITION. I guess there are a LOT of dumbarses out there willing to invest in a company that costs a LOT more to run with FEWER ships in the fleet. 

Now don't go running out to buy GMR stock thinking it's going to be a battle of money and stock will soar as a buyout battle takes place. The people from FRO have LOTS of cash reserves already, yet they state "buy Frontline." IMO, it will be more of an "in kind" potential buy out offer, meaning they will offer a certain number of shares of FRO for the remaining shares of GMR, just as FRO gave me 1100 off a 10k investment, but it is "tax free" as they gave me shares of SFL instead of cash, which is great, cause SFL is slowly rising, pays an 8% dividend, and with the rise in price of the shares they gave out, it means my dividend actually INCREASED! 

Management and some powerful shareholders at GMR refused the merger last year, but the people at FRO SHALL NOT SURRENDER, they will get what they want, it may take time and patience, but the numbers speak for themselves.