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Pocketing +50%
Returns with
Frontline (FRO)
Published:
January 7, 2008
The price of a barrel of oil hit a major milestone this past
week -- $100. Although prices eventually eased from the
psychological barrier, many analysts don't see the cost falling significantly
anytime soon.
And why should they? With increased demand from emerging markets
like China, India, and others, as well as continued unrest in
major oil-producing regions like West Africa and the Middle
East, all the signs point to a continuation of the bull run.
Luckily, while increased energy prices can hurt your pocketbook,
they can also benefit your portfolio. By investing in firms
profiting from the world's demand for oil, you can reap
substantial rewards.
It was this reasoning that led Carla Pasternak, editor of
High-Yield Investing, to explore Frontline (NYSE:
FRO, $45.88). Frontline is the world's largest operator of
tanker ships, and thanks to strong demand for oil, the rates
Frontline and other tanker firms charge for leasing their ships
are seeing dramatic increases. Of course, this is great news for
investors.
In fact, when Carla profiled the shares in
April's "Mid-Month Update," they traded only a little over
$35 per share. Today, Frontline's stock changes hands at nearly
$46. Of course, Carla never mentions a security unless it also
offers a tempting yield -- and Frontline is no different. At the
time of her profile, the stock carried an eye-popping yield of
29%. And since April, FRO has showered investors
with $6.25 per share in dividends. In total, those who bought
the stock when profiled in
High-Yield Investing have enjoyed total returns of
+48% in only a little over eight months.
In her most recent issue, Carla profiles another firm that is
benefiting thanks to demand from emerging markets. This company
is a major electrical distributor in Brazil, where GDP growth
has clocked in at nearly +5% a year. As Brazil's population
becomes more affluent, they are likely to want more modern
conveniences -- refrigerators, air conditioners, and other
devices. Of course, this plays right into this power company's
strength, which is why earnings have risen +20 in the first nine
months of 2007. And with an 8.9% yield, this stock is a dream for
investors looking for both a strong yield and capital
gains potential.
To read Carla's in-depth profile of this promising firm, we
invite you to try a risk-free subscription to
High-Yield Investing. If you decide the newsletter
is not right for you, simply cancel your order within 30 days of
subscribing, and we will refund every cent back to you. To learn
more, please
visit
this link.
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Nathan Slaughter
StreetAuthority Staff Writer
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Income Security
of the Month
Our "Income Security of the Month" for July 2008 invests in
a fast-growing overseas market that doesn't get much exposure in the
mainstream financial press. And although it typically makes enormous
annual dividend payments -- it has paid an average dividend of 24.9%
per year over the past five years -- this fund is perhaps most
appealing for its total return potential. Specifically, the fund has
delivered total returns of +263.9% since 2003, and
it ranks in the top 10% of its category over the past decade.
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Top
10 Stocks for 2008!
Since we began publishing this report back in 2003, the picks we've
featured have consistently beaten the broader market -- delivering average
gains of +21.3% per year and outperforming the S&P by a nearly
2-to-1 margin. Act now to reserve your copy of our newest report -- Top
Ten Stocks for 2008. |
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