The market was slightly down this week as were oil prices. The S&P 500 hit its bottom on Wednesday but then bounced back to close at 1,353.39 for the week. Oil prices were also down slightly. As usual, the offshore companies that I follow in this weekly series reacted differently to the market moves.
SeaDrill (SDRL) opened on Monday, May 7 at $37.09. The stock closed at $36.02 in after hours trading on Friday, May 11. This gives the stock a loss of $1.07 or 2.88% this week. SeaDrill opened at $37.76 on April 16, 2012. This gives the stock a four-week loss of $0.67 per share or 1.77%.
SDRL 5-Day Chart
click to enlarge
Source: Fidelity Investments
SDRL 4-Week Chart
Source: Fidelity Investments
Ensco (ESV) opened at $51.15 on Monday, May 7. The stock closed at $48.90 in after hours trading on Friday, May 11. This gives the stock a loss of $2.25 or 4.40% over the week. The stock opened at $52.81 on April 16. The stock thus had a loss of $3.91 or 7.38% over the four-week period.
ESV 5-Day Chart
Source: Fidelity Investments
ESV 4-Week Chart
Source: Fidelity Investments
Transocean (RIG) opened at $47.75 on Monday, May 7. The stock closed at $45.73 in after hours trading on Friday, May 11. This gives the stock a loss of $2.02 or 4.23% this week. The stock opened at $48.78 on April 16. This gives Transocean a loss of $3.05 or 6.25% over the four-week period.
RIG 5-Day Chart
Source: Fidelity Investments
RIG 4-Week Chart
Source: Fidelity Investments
Diamond Offshore (DO) opened at $64.78 on Monday, May 7. The stock closed at $62.98 in after hours trading on Friday, May 11. This gives the stock a loss of $1.80 per share or 2.79% for the week. The stock opened at $65.51 on Monday, April 16. The stock thus had a four-week loss of $2.53 per share or 3.86%. Diamond Offshore went ex-dividend on April 27, 2012. Shareholders of the stock as of this date will be receiving a total dividend of $0.875 per share. Thus, the stock's total loss over the four week period is $1.655 or 2.53% after account for dividends.
DO 5-Day Chart
Source: Fidelity Investments
DO 4-Week Chart
Source: Fidelity Investments
Atwood Oceanics (ATW) opened at $41.93 on Monday, May 7. The stock closed at $40.41 in after hours trading on Friday, May 11. This gives the stock a loss of $1.52 per share or 3.63% for the week. Atwood opened at $42.26 on April 16. Thus, shareholders in the company suffered a loss of $1.85 or 4.38% over the four-week period.
ATW 5-Day Chart
Source: Fidelity Investments
ATW 4-Week Chart
Source: Fidelity Investments
Noble Corp (NE) opened the week at $36.49 on May 7, 2012. The stock closed at $34.70 in after hours trading on Friday, May 11. This gives the stock a loss of $1.79 or 4.91% for the week. Noble opened at $36.05 on April 16, 2012. Thus, the stock had a four week loss of $1.35 or 3.74% over the four-week period. Noble went ex-dividend on May 3, 2012. Shareholders of the stock as of this date will receive a dividend of approximately $0.14 per share. If we include this into the four week return then we get a total loss of approximately $1.21 per share or 3.36%.
NE 5-Day Chart
Source: Fidelity Investments
NE 4-Week Chart
Source: Fidelity Investments
Diamond Offshore was the best performer this week with SeaDrill in a very close second. Noble Corp was this week's worst performer but all six of the stocks punished investors with capital losses over the last week. SeaDrill proved to be the best performing stock over the four-week period. Ensco was the worst performer over the trailing four week period.
Overall, the losses that the sector suffered over the last week has improved the investment opportunities here. SeaDrill and Transocean in particular look particularly appealing at these levels, with SeaDrill being the slightly better of the two for investors that are more risk-averse. SeaDrill will be announcing their first quarter results on Monday and as usual, I will have an analysis out within a few days after the announcement.
Disclosure: I am long SDRL.
