The value of micro cap stock for Frontline Ltd. (NYSE:FRO), the largest oil tanker operator in the world, dropped to an eight-month low on Wednesday after the company provided a forecast that called for seaborne oil shipments to plummet, Bloomberg reports.
According to the news source, the company's stock fell to its lowest since December 16, driven down by expectations that the coming quarter's financial results will be "significantly worse" than the previous. Although the company benefited from stockpiling crude – sending the stock up 63 percent in the first four months of the year – daily earnings have dropped to an average of $10,859 in the third quarter.
Data from Clarkson Plc, the world's largest shipbroker, show this is the lowest level since at least 1997.
"We do not see a reason to own Frontline on the back of the results for the second quarter and the outlook for the second half of 2012," said Erik Nikolai Stavseth, an analyst at Arctic Securities ASA.
As of 2:27 p.m. on August 29, Frontline stock was down 11.9 percent to $3.25.
