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  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    True, Exxon itself might be. My comments were reserved specifically for North Atlantic Drilling, which is a Bermudan company headquartered in Norway.
    Mar 20 07:52 PM | Likes Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    Fidelity is the broker that has allowed me to do this in the past. I don't work with Schwab so I can't offer any help on their policies regarding this.
    Mar 20 07:50 PM | Likes Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    Aren't the sanctions done by the U.S. and EU? Norway isn't part of the E.U. and so presumably it won't be affected.
    Mar 20 03:20 PM | 1 Like Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    1. Yes
    2. Seadrill owns 73% of NADL last I checked.
    Mar 20 03:17 PM | Likes Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    True, but some brokers still allow you to convert. For example, I've purchased shares before OTC in the United States and then sold them outright on the Oslo Bors in Norway.

    I'll have to double check and see if I can do that with NADL or not.
    Mar 20 03:15 PM | Likes Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    I bought the stock when the company was only trading on the N-OTC and ended up getting too busy when the company offered the opportunity to convert and so I forgot to do it. I'll convert the stock to the NYSE shares before I sell them at whatever point in the future I decide to do it.
    Mar 20 10:42 AM | Likes Like |Link to Comment
  • A Closer Look At North Atlantic Drilling's Opportunity In The Arctic [View article]
    I agree that we'll probably see share price growth. It may take a little while before we do, but I'm more than happy to just sit on my hands and collect that dividend while waiting.
    Mar 20 10:26 AM | Likes Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    sweeps,

    I very much agree with you here.

    I think the market is seeing that the offshore drilling market is showing signs of weakness and so is effectively selling off anything in the industry without really studying each company's fundamentals.

    North Atlantic Drilling is contractually-guaranteed to get all of its projected revenue in 2014. The company literally has no expiring contracts. But, it's been sold off. Seadrill does have some, but it's still got very high coverage... meaning it also has contractual guarantees. Seadrill Partners is in the same boat. There's no real exposure there either.

    There are some drilling companies that will be hurt by this. Companies that have a lot of expiring contracts in 2014 and older rigs, for example. There are real reasons to have some fear. But, SDRL is really looking like it's one of those "throwing the baby out with the bath water" kind of situations.

    I don't know about you, but I was buying heavily in 2008 and 2009 when the market was collapsing. Basically, everything was being sold including those companies that would not see their fundamentals affected. I did quite well when the market rebounded (not to toot my own horn). This looks like we're seeing the same situation in drilling.

    Ensco is yielding over 5%. Seadrill's yield is approaching 12%. Neither company's fundamentals have changed. Admittedly, if the malaise lasts beyond 2015 then we might certainly eat some losses if we bought today. I personally will take that risk.

    The offshore drilling industry goes through this from time to time since they're often lumped in with oil producers when the big institutional investors place trades. However, when you figure that NADL is guaranteed BY CONTRACT to get so much revenue but then the stock sells off, that sounds like a buying opportunity to me.
    Mar 13 01:09 PM | Likes Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    Mike,

    Just out of curiosity, have you thought about doing something like buying more SDRL stock and selling covered calls against the position in order to reduce your cost basis so that another decline in the stock won't hurt as much? Or even doing something like selling a put so that you can grab the stock at a lower price if it declines?

    My personal opinion (please, don't take this as investment advice because it isn't intended as such) is that I've been considering increasing my position at this level. I don't really care if the stock price moves up from this level anytime soon. I'd be perfectly happy if it just stayed flat and gave me the dividend checks. With that dividend, I'd even be willing to accept a short-term decline so long as it maintains that dividend.

    Since you sound like you want the stock, have you thought about hedging the position? For example, buying SDRL stock and then using some of the dividend money to buy yourself put options against the position so that you protect the downside?

    Again, this isn't advice and I don't want to presume to tell you what to do with the money that you worked hard to earn. I'm just offering a couple things to think about based on the way that I earn my money.

    PH
    Mar 13 12:30 PM | 1 Like Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    I'm short covered calls. I own SDRL and I believe in it over the long term, but I sold some calls against my position a few months ago to try and make extra money on the position. I'm short the April 2014 $40 calls and long the stock. I don't think SDRL will hit $40 per share in the next month so it was an easy way to make $0.55/share when I sold them in January.
    Mar 13 10:04 AM | Likes Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    It was going to be North Atlantic Drilling, but that company backed out because they couldn't agree on a way to ensure that the minority shareholders are taken care of. I don't know all the details there, but I am glad to see that the company's management has their priorities straight.

    There aren't too many companies out there that have harsh environment rigs and a large number of them are owned by NADL. I'm not sure who the first movers will be, but I can see if I find out.

    With that said, NADL is probably the best way right now to play an Arctic drilling boom because it's the only pureplay.
    Mar 13 10:00 AM | 4 Likes Like |Link to Comment
  • Seadrill Discusses Offshore Drilling Industry Future At Credit Suisse Seminar [View article]
    Here you go: http://bit.ly/KQHccq
    Mar 12 09:33 AM | 1 Like Like |Link to Comment
  • Seadrill Discusses Offshore Drilling Industry Future At Credit Suisse Seminar [View article]
    I can't think of a pureplay either. The builders that Seadrill, for example, uses are Keppel, Dalian, and Samsung. Keppel complains about the Korean yards (Samsung) stealing all the business. Keppel though is probably the closest thing to a pure play on shipping yards, and even then it's not really much of one. However, there's no pure play rig builder.
    Mar 12 09:32 AM | 1 Like Like |Link to Comment
  • Seadrill Discusses Offshore Drilling Industry Future At Credit Suisse Seminar [View article]
    You might like VNR as well. It's an American natural gas and oil company that presently pays about 8%. I just recently acquired a good sized position myself.
    Mar 11 03:12 PM | 2 Likes Like |Link to Comment
  • Seadrill Discusses Offshore Drilling Industry Future At Credit Suisse Seminar [View article]
    Oops, sorry, you wanted rig builders, not rig contractors.

    I agree with Saratogahawk. Probably Keppel is the best rig builder.
    Mar 11 03:11 PM | 2 Likes Like |Link to Comment
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