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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: stuffbug who wrote (74592)	12/22/2023 9:02:20 AM
From: FIFO_kid2	Read Replies (1) \| Respond to of 78774

FRO I believe currently has the youngest fleet in the VLCC space but in the past has been the leader to the new build pushes in past cycles killing the high profitability. So its something to watch as a buyer of the stock as well as understanding the narrative of the drivers here. I hold a small position in FRO that I acquired based upon that reasoning when the stock was around $7.30 in 2022 and I knew there would be logistics problems with crude favoring tanker transport but unfortunately to my detriment have been horribly influenced by QT on position sizing in all of my stock purchases since the blowoff rally of smaller cap peaking in March 2021 and actually have been much more prone to selling put options and put credit spreads since then which carries less alpha risk yet an acceptable return on capital. If interested in FRO at this time ideally, I would want to buy the stock is at least 1 standard deviation below VWAP assuming the narrative is intact and certainly consider taking profits if it got to 2 standard deviations above VWAP regardless of narrative. I find that this is generally the best tact to consider in managing stocks in cyclical sectors and ideally the best time to buy commodity stocks as a contrarian and seller when technical indicators tell you.