Seeking Alpha

Tales From The ...'s  Instablog

Tales From The Future
Send Message
Tales From The Future. 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
My blog:
Tales From The Future (Raw Feed)
  • 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.

    Themes: oil, energy Stocks: SDRL, ESV
Back To Tales From The Future's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (3)
Track new comments
  • 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 (4264) | 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 (6064) | 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:

     

    http://bit.ly/1kVJISQ

     

    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
Full index of posts »
Latest Followers

StockTalks

  • $GM confirms that the 200-mile Bolt EV has entered road testing: http://cnet.co/1LpbmWE
    Jun 24, 2015
  • $GREK Capital controls next in Greece? Talks down to the wire. Sentiment more negative within EU member states lately. Patience is up?
    Jun 15, 2015
  • Hanergy: A Warning About A Major Guggenheim Solar ETF ($TAN) Component: http://seekingalpha.com/p/29dpw
    Mar 5, 2015
More »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.