Bucket 3 Trade Idea: FRO

  • The company operates a fleet of large container ships
  • The stock slumped big this year as prices for container transport dropped and the firm subsequently ran into a cash crunch
  • Yesterday and this morning the stock made gigantic leaps due to a restructuring announcement that essentially takes a bankrupcy in the medium term off the table
  • We view the stock as a potential rally candidate into year-end (if and when) as it is closely linked to global economic growth hopes. 
  • Technically the stock although up something like 40% in the past two days has room up to around $5.20, at which point resistance comes into play.
  • We may consider entering a small position in this stock later this week.


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