Stocks that Float: TANKERS & DRY BULK SHIPPERS

[xanadu90]

Wildbill. If you look at the FRO's numbers you see that they have lots of cash - no problem to pay good dividends to the shareholders. Big John has a myriad of ways to earn money - one of those is to lend his own shares to shortsellers, who then pay the Frontline dividends to JF (Frontline does not pay his dividends), and that's a lot of money. In addition JF gets the lending interest rate and the normal compensation for his shares.

And guess who is buying the cheap shares from the shortsellers? JF's various trusts and fonds of course.

When JF asks his own shares back, then after the shortsellers have pushed the price up - guess who is again lending expensive shares to always eager shortsellers..

No wonder I have noted that shorting Frontline's shares is no more as frantic as it once used to be.