MTW and FRO
Man, talking about taking a nose dive. These two companies have gone down so much I have nothing to do but hold on and wait.
The crazy thing about both Manitowac and Frontline is that they both have pretty solid financials, they’re just in real poor financials. Since I’ve purchased them, they are down 57.5 % and 36 % respectively in my portfolio. The last two weeks have not been nice to either of them as it seems that Hedge Funds want nothing to do with either of these stocks.
I mean, maybe I should just get rid of one of these guys. But which one? MTW has a PE ratio of 4.2!! You know how insanely low that is? I can’t even describe it lol. On top of that, it exceeds the growth forecasts for the sector and the S+P 500 as well as excellent liquidity ratios. Seriously, the only problems MTW faces are the lack of high dividend yield and being part of the industrials sector: two things key in recessionary defensive stocks.
Frontline, on the other hand, has an excellent dividend. It yields nearly 25%; yeah, its rediculous, but it was yielding 13% or something when I first bought it, which just shows how much it has decreased the past few months. FRO has great liquidity, but its only problem is that it is related on the price of oil.
Like I said, both of these have dropped so much that I can only hang on for the long term.
