Frontier Oil Corp (FTO)

[profiteer11]

FWIW
Company Highlight: 8/23/08
Frontier Oil Corp is an independent energy engaged in crude oil refining and wholesale marketing of refined petroleum products. The company has grown profits and dividends in excess of 30% annually over the past five years earning a 25%+ return on equity. While profits in 2008 will decline, that appears well reflected in the price of FTO’s stock. Nevertheless, earnings should recover over the coming years as a result of:


<!--[if !supportLists]-->(1) <!--[endif]-->the company’s disproportionate exposure to diesel fuel which has sustained much higher margins than gasoline,


<!--[if !supportLists]-->(2) <!--[endif]-->its ability to process heavier, less expensive types of crude oil while still producing higher value added refined products,


<!--[if !supportLists]-->(3) <!--[endif]-->an aggressive capital expenditure program.


FTO is rated A by Value Line, has a modest 13% debt to equity ratio and its stock yields .8%

http://finance.yahoo.com/q?s=FTO



Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 38 years of investment experience includes institutional portfolio management at Scudder. Stevens and Clark and Bear Stearns, managing a risk arbitrage hedge fund and an investment banking boutique specializing in funding second stage private companies. Through his involvement with Strategic Stock Investments, Steve hopes that his experience can help other investors build their wealth while avoiding tough lessons that he learned the hard way.