RealMoney Radio Mailbag: Keep Off the Frontline

Cramer believes earnings have peaked in the energy tanker business, and Frontline's dividend could suffer.
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Editor's Note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.

Frontline (FRO) - Get Report offers a solid dividend. What is your take on the stock?-- K.G.

James J. Cramer:

The oil tanker currently pays a $3.10-a-share quarterly dividend, which equates to an impressive 29.5% yield. That said, I believe that earnings have peaked in the energy tanker business, because supply has quickly caught up with demand. This could be bad news, since Frontline's dividend is tied directly to its earnings. With that in mind, I believe that listeners should avoid the stock, as a potential decline in share price could offset the benefit of the dividend.

Transmeta (TMTA) may be under your radar, but the stock has been cooking lately. What do you think?-- T.T.

James J. Cramer:

This chip stock has doubled in the past week and nearly tripled in the past month. The company reported better-than-expected results last week, though I believe investors looking for a semiconductor stock should focus on

Intel

(INTC) - Get Report

. (In the interest of full disclosure, I own Intel in my charitable trust,

ActionAlertsPLUS

.)

I'm starting to hear a lot about RFID technology. What are the big companies that are involved in this?-- C.W.

James J. Cramer:

One of the first names that comes to mind is

Symbol Technologies

(SBL)

, which I formerly owned personally. While this radio-frequency technology appears to have a bright future, profits in this space have proven elusive to date.

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