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Tales From The Future
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Tales From The Future (tftf). I picked my nickname because many advisors and investors claim they can predict the future of the (stock) markets and somehow pick the winners. I don't. I usually do not engage in short-term trading and myopic analysis (quarter by quarter, without looking at the big... More
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  • Two Potentially Interesting Oil Stocks: SDRL And ESV 3 comments
    May 6, 2014 1:20 PM | about stocks: SDRL, ESV

    I don't have time to write a detailed analysis for now, but these two oil stocks could be interesting at current price levels and the lack of alternatives in a top-heavy US stock market*, also have a look at the dividends:

    - Seadrill (NYSE:SDRL)

    - Enso (NYSE:ESV)

    PS: A smaller player in the space is ATW, but it doesn't pay a dividend.


    * I'm out of most stocks since late 2013 and just hold on to a few US stocks, among them AAPL and lately SDRL. I'm also short a few technology and momentum names (AMZN, YELP, TWTR, TSLA...etc.) with small positions at the moment.

    Disclosure: I am long SDRL.

    Stocks: SDRL, ESV
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Comments (3)
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  • chechako
    , contributor
    Comments (4) | Send Message
    I am a buyer of SDRL, NADL, PGH and KOG.
    6 May 2014, 02:48 PM Reply Like
  • mapodga
    , contributor
    Comments (7723) | Send Message
    i was Long with SDRL. i went out because their debt is not sustainable.
    They have debt/ebitda over 8.


    And additionally they didn't get financing for their latest (to expensive) investments on level of 7 bln$.


    It is just to risky.
    6 May 2014, 06:37 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7762) | Send Message
    Author’s reply » There was an article on SA recently looking at their debt. You are correct that it's higher than their peers, but the rates they got are very favorable:




    I also had a look at their debt because of the dividend. They have modern rigs under construction and should soon be able to generate a lot of free cash flow (also ensuring the dividend).


    But thanks for pointing out the debt level.


    PS: I don't have time to write a detailed analysis at the moment about SDRL and ESV, so it was just a short note. I have no position in ESV yet.


    ESV has lower cost of capital at the moment and lower debt ratios, it may be an interesting alternative to SDRL...
    7 May 2014, 02:59 AM Reply Like
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