The stock of Frontline Ltd. (FRO), which I first discussed here on April 28, 2009 at a price of $19.17, continues to meander at/near $26.

A shipper and operator of very large crude carriers (VLCC) and Suezmax tankers, Frontline has been hindered by a volatile spot tanker market, as only about 25-27% of its work is tied to fixed-rate contracts.

Frontline should post a double-digit revenue increase in 2011, but that's contingent on several variables, including day rates, fleet utilization rates, and operating expenses, each of which could vary substantially. The possibility of oil production disruptions in Middle East nations stemming from political/social unrest adds another unknown variable for at least the quarter ahead, perhaps longer.

Frontline Ltd. (FRO), which I first discussed here on April 28, 2009, at a price of $19.17, continues to meander.

A shipper and operator of very large crude carriers (VLCC) and Suezmax tankers, Frontline has been hindered by a volatile spot tanker market, as only 34% of its work is tied to fixed-rate contracts.

Frontline, currently trading at/near $26, should post a 20-25% revenue rise in 2011, but that's contingent on a host of variables, including day rates, fleet utilization rates, and operating expenses, each of which could vary substantially in the year ahead.

Frontline Ltd. (FRO), which I first discussed here on April 28, 2009 at a price of $19.17, appears to have weathered the U.S.'s deepwater offshore oil drilling moratorium reasonably well, but given sector uncertainty, it's perfectly reasonable for more-cautious investors to close their FRO position now, and take the roughly $7 gain.

However, those investors who can tolerate high-risk can retain their full position and go for a possible larger gain.

Dayrates for the company's very large crude tankers (VLCCs) and Suezmax tankers rose to an average of $45,300 and $31,800 in the first quarter, respectively, up from $33,200 and $21,300 in the fourth quarter of 2009.

Shipping leaser Frontline Ltd. (FRO) which I first wrote about on April 28, 2009 at a price of $19.17, has finally entered smoother waters. And it's about time.

Dayrates for the company's very large crude tankers (VLCCs) and Suezmax tankers rose to $33,200 and $21,300 in the fourth quarter, respectively.

Further, the calculation here is that 2010 global GDP growth with be sufficient to maintain an adequate-to-high oil price of $60-80 per barrel. That should be enough to keep tanker dayrates firm. The economic bears argue sluggish GDP growth will weigh on oil demand, depressing oil's price, and thus reduce demand for tankers. As they say in The Bronx, N.Y., we'll believe it when we see it, hence the risk/return remains tipped in favor of an FRO position.

Ship leasor Frontline Ltd.'s (FRO) stock has risen substantially since since the initial recommendation on April 28, 2009, at $19.17, but the company's longer-term outlook is still giving institutional investors the jitters. It's a close call, but I'm reiterating the buy rating.

Dayrates for very large crude containers and Suezmax tankers -- expected to firm late in 2009 -- did not, due to a large increase in the worldwide fleet and production cuts by OPEC. The First Call FY2009/FY2010 EPS estimates for Frontline are $1.34 to $1.65.

Frontline Ltd.'s (FRO) stock has risen only incrementally since the April 28, 2009 Buy recommendation at $19.17, but the view from here maintains that considerable upside remains, hence I'm reiterating the buy rating. Here's why:

The spot market rate for Frontline's very large crude carriers (VLCC) and Suezmax tankers is likely to stabilize, with a modest improvement in rates heading into the second half of 2010.

Readers of this space know that one of the preferred sectors is oil/oil services, and an extension of the above concerns companies whose fate is linked directly to the demand for oil. And with the aforementioned in mind, Frontline Ltd. (NYSE: FRO) is worth a review.

Frontline is a shipping company that operates very large crude carriers (VLCC) and Suezmax tankers. The company transports primarily crude oil products, but also raw materials (coal, iron ore).

Readers of this space know that one of the preferred sectors is oil/oil services. Given oil's importance in a growing global economy, oil and oil services companies are likely to continue to experience steady demand for their services/products. And with the above in mind, Frontline Ltd. is worth an evaluation.

Frontline Ltd. (NYSE: FRO) operates about 75 tankers, under primarily short-term contracts, with a total capacity of more than 18.5 million deadweight tons.

FRO's tankers are designed to transport oil, and, as a result of their size, transport the world's most vital commodity from the Middle East Gulf to the Far East, Northern Europe, the Caribbean, and the Louisiana Offshore Oil Port. FRO's Suezmax tankers operate primarily in the Atlantic basin. The company also transports coal and iron ore.