FRO is yet another low-price, high-risk shipping stock that is setting up in what looks to be a very bullish long-term pattern. FRO will be added as both a Long Trade Idea as well as a Long-Term Trade Idea (trades with unusually large profit potential and holding periods typically measured in months to years). As with the other recently posted low-price shipping stocks, consider adjusting your position size down to account for the above average volatility and potential gain/loss on these trades.
My take on these shippers is simple: IF the economy improves throughout the remainder of 2013 AND the stock market holds up (the two can often be mutually exclusive), some these shippers will most likely do very well. Again, DYODD and be aware of the potential risks involved in trading low-priced, low-quality stocks. FRO 2-day & weekly charts with targets & suggested entry criteria. Stops TBD upon entry.
