It’s been on the watchlist for a while, and now we’re ready to make a move on Frontline Ltd. (NYSE: FRO) after a drastic January pullback and the more recent upturn. I’m going to go ahead and allocate 5% of the portfolio’s value to FRO shares today.

Just to recap, Frontline is an oil tanker/shipping company that made its way onto our watchlist based on its valuation. With a current and forward-looking P/E in the 15-ish area, we’re finding a decent price. And, with net margins of slightly better than 11%, earnings are fairly well protected.

Chart-wise, we couldn’t ask for anything more. FRO shares just kissed and pushed off a long-standing support line. If the pattern repeats itself (and I believe it will), the stock should give us a nice run for a few weeks…. though the aim is to put the stock into a more permanent uptrend.

Frontline Ltd. (NYSE: FRO)

After the purchase, this is what the portfolio will look like.

By the way, don’t forget about tonight’s webinar.