Seeking Alpha

Seadrill sinks as Credit Suisse downgrades, cuts target to $30 from $40

  • Seadrill (SDRL) -2.4% premarket after Credit Suisse downgrades shares to Neutral from Outperform and cuts its price target to $30 from $40.
  • The firm believes SDRL misjudged the market with the amount of new rigs it built that have not been contracted, and that too much funding uncertainty exists amid a backdrop of high debt repayments and softening dayfloater rates.
Comments (61)
  • mbn
    , contributor
    Comments (413) | Send Message
     
    But meanwhile SDRL gets higher rates for it's Jack-ups, etc. Did anyone at Credit Suisse even listen to Management discuss the softening of the market, and what they were doing to account for that?

     

    Guess not.
    11 Apr, 09:15 AM Reply Like
  • murray555
    , contributor
    Comments (218) | Send Message
     
    When I see a stock like this take a tumble based on an analyst rating it makes me realize there are a lot of participants in the stock markets that should be buying CD's.
    11 Apr, 09:05 PM Reply Like
  • wigit5
    , contributor
    Comments (3928) | Send Message
     
    yay selling puts
    11 Apr, 09:18 AM Reply Like
  • 2839298249
    , contributor
    Comments (211) | Send Message
     
    The downgrades in this sector are really getting ridiculous. I will either make a ton or go broke betting on the sector.

     

    I will continue scaling in...
    11 Apr, 09:18 AM Reply Like
  • 11146471
    , contributor
    Comments (456) | Send Message
     
    Yeah...You know what they say (in the markets): when everybody says it's white, then it's definitely black.

     

    Everybody now is downgrading the drillers... So guess what will happen next.
    11 Apr, 09:26 AM Reply Like
  • njbother
    , contributor
    Comments (187) | Send Message
     
    You and me both!

     

    Long SDRL, ESV and PRSEF. And buying more on these dips.

     

    But I caution everybody to diversify into other sectors/industries.

     

    I'm sure 007 above will not go broke, but we both are probably overweighted here.
    13 Apr, 11:22 AM Reply Like
  • gmanwicksy
    , contributor
    Comments (126) | Send Message
     
    Credit Suisse is on my thank you list for getting me some more sdrl cheaper today. Otherwise I ignore them.
    11 Apr, 09:26 AM Reply Like
  • guyjones
    , contributor
    Comments (22) | Send Message
     
    Interesting to note that Credit Suisse owns a not-insignificant 1,148,000-share stake in Seadrill, a new position taken as of 12/31/13.

     

    http://bit.ly/1hpBwdr

     

    The analyst opinions are, as always, to be looked at with an extremely wary and cynical eye.
    11 Apr, 09:41 AM Reply Like
  • jsteinm1
    , contributor
    Comments (147) | Send Message
     
    They must be looking to add to that on the cheap. I never regard analyst opinions, they're biased. Even if they claim they aren't biased, you don't know if they're trying to get clients in or out of a stock.
    11 Apr, 11:46 AM Reply Like
  • njbother
    , contributor
    Comments (187) | Send Message
     
    Yeah but they have this "firewall" between analysts and portfolio managers, who probably have lunch together each day.
    13 Apr, 11:24 AM Reply Like
  • 2839298249
    , contributor
    Comments (211) | Send Message
     
    Unless global demand for crude is significantly decreasing and/or the drillers have massively overbuilt capacity, I don't see what the panic selling is all about really.

     

    When the market no longer reacts to the never-ending downgrades, that will be the signal that we've found the bottom. Too many nervous longs and over-eager shorts in the sector right now.
    11 Apr, 09:42 AM Reply Like
  • eilea
    , contributor
    Comments (127) | Send Message
     
    people can sell. IF you don't think so, you can always sell puts or buy the stocks.
    11 Apr, 09:52 AM Reply Like
  • njbother
    , contributor
    Comments (187) | Send Message
     
    Only an idiot would short a HTB stock that pays such a large dividend.

     

    Of course day traders are the exception, they can be in and out so quickly, that they never have to pay the dividend, nor the 18% plus annual interest for borrowings shares.

     

    I'm normally a long term investor and have held SDRL for years, but last week bought some more for the upcoming dividend, but also sold a $35 call for July. Not a long term trade, but as I am overweighted in the offshore, just looking to capitalize on what may be a short term situation.
    13 Apr, 11:31 AM Reply Like
  • JD in NJ
    , contributor
    Comments (806) | Send Message
     
    I wonder if the yield will reach 12%. I wouldn't mind getting that much more with my reinvestment dollars for a while.
    11 Apr, 09:43 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    So CS doesn't mention the new auctions around the world this year. Those have been strong aggressive auctions.
    They don't mention the improved jackup rates for SDRL or the Heads of Agreement for Pemex.
    They don't mention the great profit on the 4% sale of SapuraKencana stock.
    Nor do they mention the different exploration and production philosphies of the NOCs as opposed to the IOCs.
    Nor do they mention Statoil's recent business relationship with the Chinese National Pet. Corp for offshore drilling. Nor any other major IOC's linkups with NOCs for offshore drilling.
    The UK and Norway have both urged much broader exploration in their offshore areas to improve local reserves.
    The new GOM block bidding was really excellent and implies lots of drilling potential there starting in 2015.
    Russia is looking for partners to exploit the Barents and Kara Sea blocks.

     

    Yup. Whats to like with the drillers?
    11 Apr, 09:55 AM Reply Like
  • Debutant
    , contributor
    Comments (1900) | Send Message
     
    On the same day (today) CS says that SDRL misjudged the demand, but Statoil announces new discovery in the North Sea.

     

    Everbody is free to choose who to believe.
    http://bit.ly/1hpFy5A
    11 Apr, 09:59 AM Reply Like
  • Bryce_in_TX
    , contributor
    Comments (2568) | Send Message
     
    Oh, you mean this Credit Suisse, the ones who lied about their 4th Qtr 2013 preliminary net income, and the Credit Suisse who was caught aiding and abetting individuals evading U.S. Income Taxes.......that Credit Suisse?

     

    http://bv.ms/1kQst46

     

    http://bloom.bg/1hpGp6p

     

    Well, they certainly have a lot of credibility. (Cough, cough)
    11 Apr, 10:02 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (681) | Send Message
     
    Yep. Or, Brazil will likely be a net exporter of oil due to the salt fields...or Australia is opening up offshore fields for auction, etc etc. I see more positives than negatives and no indication of falling rates for Seadrill nor any indication of issues with securing contracts.
    11 Apr, 10:03 AM Reply Like
  • thomas_schleicher
    , contributor
    Comments (39) | Send Message
     
    and you know, when everybody is selling crude price will drop and with it dayrates for rigs.
    11 Apr, 10:23 AM Reply Like
  • JD in NJ
    , contributor
    Comments (806) | Send Message
     
    Nobody will be selling oil until after they've managed to drill the wells to get to it.
    11 Apr, 10:26 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (681) | Send Message
     
    Contracts to get the oil from the field are lengthy and aren't based on day to day fluctuations of price. Capital decisions aren't made on short term fundamentals.
    11 Apr, 10:27 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    1st off oil is over $100 per barrel and no indications of price weakness in sight.
    Day rates for offshore deepwater drilling are not affected by short term oil price fluctuations. A 10 year statistical analysis by Kaiser, et al at LSU shows that deepwater drilling correlates closely to 2 year rolling average oil prices and not to short term fluctuations.
    Development time for a new field is between 5-10 years from investigation to seismic studies to drilling site selection etc. so once fields are defined the drilling may go on for many years. That's why it is so important to follow the auctions of new fields. Those have been very solid in 2013/14 meaning that oil companies have laid out real money to buy those blocks for future exploration. If they don't drill they lose the rights to the block.

     

    The degree of misinformation about oil exploration offshore is alarming to me. This industry has been cyclical since its inception but its just one of many: the auto industry, iron and steel, semiconductors, copper, shipping, aluminum just to name a very few. Its really hard to be all invested in industries that have no cycle nature.
    11 Apr, 10:42 AM Reply Like
  • 2839298249
    , contributor
    Comments (211) | Send Message
     
    Saratoga, as always you hit the nail on the head. The drilling industry, especially offshore, is a long lead time business. Exxon, Total, Petrobras, etc need to have enough drilling going on globally to insure production 5-10-20 years down the road. The day-to-day noise in both crude oil price and drilling stocks is really insignificant to the major operators.

     

    Let the Wall St manipulators print their claptrap. Follow the fleet status reports, offshore auctions, new finds, that is where the facts lie.
    11 Apr, 11:29 AM Reply Like
  • njbother
    , contributor
    Comments (187) | Send Message
     
    Agree with JD below.

     

    There is very little oil for "sale" most is contracted for in advance. If there is such an economic collapse that oil becomes "unsaleable" where should we invest?
    13 Apr, 11:37 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    nj if that type of collapse occurs you had better be investing in food, padlocks and bullets.
    13 Apr, 12:50 PM Reply Like
  • cwirtz2000
    , contributor
    Comments (5) | Send Message
     
    Hmmm... do I rotate out of MCD paying 3.27% dividend and into SDRL paying 11.53%?
    11 Apr, 10:07 AM Reply Like
  • wigit5
    , contributor
    Comments (3928) | Send Message
     
    I would say no, MCD is a defensive dividend payer, you should own it for a little bit of growth but mostly the consistent dividend and limited downside.

     

    SDRL isn't really defensive to volatile imo great dividend and at these levels undervalued so you buy it for the price appreciation and the good dividend which may or may not be safe long term (5 years out).
    11 Apr, 10:11 AM Reply Like
  • murray555
    , contributor
    Comments (218) | Send Message
     
    I would say yes. Take your sdrl profits and buy mcd with them. Does anyone think the world will use less oil in the next 50 years? Sdrl and RIG are both longer term investments. Buying sdrl at $33 or less will look like a genius move in 5 years.
    11 Apr, 09:02 PM Reply Like
  • wigit5
    , contributor
    Comments (3928) | Send Message
     
    murray I think you confused yourself or made an error in your response... its self contradicting if I'm reading it correctly.
    12 Apr, 09:48 AM Reply Like
  • psapinski
    , contributor
    Comments (2) | Send Message
     
    I just bought shares of this a little over a week ago based on its yield. All recent reports were saying they are in better shape then other drillers, have the newest rig fleet, etc. All articles in past week have been positive and now credit issue downgrades. Amazing how things change so quickly. Do these analyst really know what they are doing or are they playing the market for their benefit.
    11 Apr, 10:08 AM Reply Like
  • Debutant
    , contributor
    Comments (1900) | Send Message
     
    They know what they are doing, which is playing the market to their own benefit.
    11 Apr, 10:21 AM Reply Like
  • FlaYankee
    , contributor
    Comments (113) | Send Message
     
    Never could understand a downgrade after a stock is already down well over 30% off its 52 week high. Seems much late to bash the drillers party as this sector is truly unloved, hated and now is probably a good time to invest with shares at or close to 52 week lows. Sector sentiment is absolutely horrible as doomsayers are coming out the woodwork as if the offshore sector will never recover and offshore oil is no longer worth drilling for! Patience is key here and dare to go against the herd and be brave enough to step up to make a purchase when everyone else is stampeding towards the exitSuccessful investing is about buying low and selling high.
    11 Apr, 10:30 AM Reply Like
  • JD in NJ
    , contributor
    Comments (806) | Send Message
     
    It's like smacking the bottom of the catsup/ketchup bottle to get that last little bit of profit.
    11 Apr, 10:31 AM Reply Like
  • long_on_oil
    , contributor
    Comments (1070) | Send Message
     
    I keep a spreadsheet on Sea Drills yields since Jan 2011 and the highest yield has been 13.16%. This is based on the monthly closing prices. That occurred in Sept 2011. Based on that Sea Drills bottom could be $29.94. I am maxed out on my SDRL exposure but if it gets that low I will violate my self imposed guidelines and buy several additional shares.
    Right now we SDRL owners need to take a wait and see attitude and let these bashers drive the price down. I would love to see SDRL below $30.
    It amazes me that Buffet has not found Sea Drill yet. But then again it would be 2 very rich guys with big egos trying to run a company and that never works out.
    11 Apr, 10:51 AM Reply Like
  • Not_Quite_Pheidippides
    , contributor
    Comments (147) | Send Message
     
    Half full / half empty... they seem to be completely fixated on the drillships coming out of the yards this year that they haven't yet announced contracts for. West Saturn and West Jupiter are slated for delivery in 2Q and 3Q, respectively. And... no news! Run for the hills!

     

    They did state in 1Q earnings that, "Seadrill is making progress in contract discussion for the West Saturn and West Jupiter and expects the units to commence attractive medium to long term contracts immediately after delivery from the yard. Order backlog excluding the Saturn and Jupiter discussions currently stands at US$20.2 billion." If you know when those discussions will be concluded and announced, you could probably make bank on the options plays. Sans ESP, unfortunately, I will just buy regular shares.
    11 Apr, 10:56 AM Reply Like
  • Not_Quite_Pheidippides
    , contributor
    Comments (147) | Send Message
     
    West Carina is also slated for delivery in 4Q2014.
    11 Apr, 10:57 AM Reply Like
  • Not_Quite_Pheidippides
    , contributor
    Comments (147) | Send Message
     
    Excuse me, not 1Q earnings -- getting ahead of myself. 4Q2013 earnings release.
    11 Apr, 11:14 AM Reply Like
  • UKjtg
    , contributor
    Comments (2) | Send Message
     
    A comment from a Brit here. I bought into Seadrill a few months ago as a hedge against my investment in a junior oil explorer in the North Sea. Having been in that from the beginning when it was a private venture, and seen how it has struggled to raise interest oafter floating on the London AIM exchange a few weeks ago, I know three things.

     

    1. Rig prices shot up post Deepwater Horizon, when plenty of older rigs were withdrawn to service platforms.
    2. We missed a drilling slot last year because we didn't have enough clout and there weren't enough rigs to go round when the prior lessee ran over.
    3. We suffered major dilution in order to be able to hire a rig this year for the campaign about to spud.

     

    This is because there aren't enough good spec rigs around! And they're expensive! It's far more painful owning the explorer than the provider of the 'picks and shovels'. We might get on the radar in three months if we can prove commerciality of our black gold, but if we do, the production plan calls for more leased rigs!

     

    I don't believe many Indians, Chinese, and soon to be Africans, are running their cars on natural gas, and the worldwide use of diesel generators continues to climb, so oil isn't dead yet, even if there's a lot of natural gas in the US.

     

    When I realised I wanted to complain about my energy bills, I bought shares in the (still) high-yielding energy provider. Haven't shot the lights out on share price, but probably the most solid investment I've ever made.
    11 Apr, 12:15 PM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    Petrobras news today:

     

    "PBR also is finalizing the number of vessels it expects to use at the Libra subsalt field; it expects to use 12-16 platforms at the field, which is estimated to contain recoverable reserves of 8B-12B boe."
    11 Apr, 01:42 PM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    Petrobras announces drilling needs for Libra.

     

    "PBR also is finalizing the number of vessels it expects to use at the Libra subsalt field; it expects to use 12-16 platforms at the field, which is estimated to contain recoverable reserves of 8B-12B boe."
    11 Apr, 01:43 PM Reply Like
  • delprice
    , contributor
    Comments (273) | Send Message
     
    I'm all in with PBR and SDRL, also KMI and ARP -- patience rewarded immediately with dividend yields--what's wrong with that?
    11 Apr, 05:38 PM Reply Like
  • delprice
    , contributor
    Comments (273) | Send Message
     
    I'm out of CIG/PBR --- too much political heat for me.
    16 Apr, 10:42 PM Reply Like
  • delprice
    , contributor
    Comments (273) | Send Message
     
    Not having patience with CIG and PBR cost additional gains...
    7 Jun, 03:47 PM Reply Like
  • Chancer
    , contributor
    Comments (2523) | Send Message
     
    CS talks their book. Most likely shorting to 30. If it hits 30, CS will upgrade back to 40 after going long. CS are analysts without a soul.

     

    My opinion is that SDRL will not hit 30 on fundamentals or the CS downgrade. What will take SDRL below 30 will be a plunging market that takes everything down with no place to hide. It is going to be a blood bath. Get cash ready for bargains.

     

    B of A/Merrill predicts another big market correction in Fall- like September- if you miss this one.

     

    Maybe we get an up market by December/January.
    11 Apr, 04:08 PM Reply Like
  • Bill L
    , contributor
    Comments (12) | Send Message
     
    Got to believe buyers step in "bigtime" before we see 13% yield!

     

    I will add at $32.00 = 12.25%
    11 Apr, 06:15 PM Reply Like
  • murray555
    , contributor
    Comments (218) | Send Message
     
    Me too! Thank you C S...
    11 Apr, 09:09 PM Reply Like
  • sethmcs
    , contributor
    Comments (3067) | Send Message
     
    Smooth move. Placed an order after close Thursday for SDRL @ $33.75. Got the stock at the open $33.15. Love those massive manipulative plunges that occur before the market even opens. Folks these sellers are shorts but they cannot remain short because they have to cover the dividend. Any bounce and SDRL will be above $36.

     

    12 Apr, 01:42 AM Reply Like
  • njbother
    , contributor
    Comments (187) | Send Message
     
    They also have to pay about 18% annual interest to borrow a HTB stock.
    13 Apr, 11:46 AM Reply Like
  • go-4-it
    , contributor
    Comments (454) | Send Message
     
    I couldn't resist buying some more SDRL at $33. I did it a couple of weeks ago at the same price. My cost average on the stock is around $37.50 a share. Down for now, but I believe in the future for SDRL, and I will either take it on the chin, or be one big happy camper in the future. I will gladly accept over 4 k in dividends this year, and I am dripping the stock now. I am "investing" or "gambling", which I believe is what the market is all about. Buy low, and sell high, right? Till that time comes, I will take the divies, and wait it out.
    13 Apr, 05:18 AM Reply Like
  • mapodga
    , contributor
    Comments (980) | Send Message
     
    I again checked the numbers and nothing is wrong. Their only weaknees/strength is high debt. But they are Norwegian company and they can issue bonds there at very low price.

     

    This has to go up again and meanwhile we will live with one of the best yield rate.

     

    Long SDRL
    13 Apr, 08:35 AM Reply Like
  • ParaBellum16
    , contributor
    Comments (38) | Send Message
     
    I've been biding my time before entry into $SDRL. So far patience has paid, but I'm running out of it on it with the price where it now is. Getting greedy and trying to time the perfect bottom has never been my strong suit.
    Meanwhile, I've had money parked in another drillship operator, Awilco Drilling (OTCPK:AWLCF). Bought it back in September '13 as I recall, now am up some +4.00% from a pure cap gain basis (big whoop), but am collecting that handsome 20.0%+ dividend they pay without ever flinching. And in $AWLCF there is no doubt as to contracts and earnings going forward for the next 1 1/2 yrs. They operate only 2 shallow-water ships, both leased out at great rates until time to pull back to dry dock and have some refitting/modernization work done starting mid to late 2015 as I understand it. But that's still a ways away, so for now .. I'm content with the (secure) 20% return.
    Seadrill will soon enter my income portfolio as a compliment to Awilco Drilling, no doubt. Soon. Very soon.
    14 Apr, 03:49 PM Reply Like
  • go-4-it
    , contributor
    Comments (454) | Send Message
     
    Ok Para, I have bought it over the past few years between $29-$45, and it seems to hold up around $33. Now may be the time to buy, and save some cash, just in case the market free falls. I am over weighted, but just keep buying at $33, and if it drops, will buy more. In time, it will pay off huge.
    14 Apr, 08:27 PM Reply Like
  • Miskit
    , contributor
    Comments (12) | Send Message
     
    Credit Suisse seems to be bad-mouthing stocks just to drive down the price. Someone should investigage them. This seems to be a pattern.
    2 May, 03:46 PM Reply Like
  • Miskit
    , contributor
    Comments (12) | Send Message
     
    Credit Suisse seems to be routinely bad-mouthing stocks with reports that turn out not to be true. I suspect they're beating down the stock so one of their friends can buy it cheap.
    Someone needs to investigate them.
    2 May, 03:48 PM Reply Like
  • dig4oil
    , contributor
    Comments (25) | Send Message
     
    WOW! STUNNINGLY WRONG! THE WINNER Of the HOW WRONG CAN YOU BE about SDRL Award for the biggest analyst mistake goes to Credit Suisse Gregory Lewis: using silly phrases like.. "has a lot of wood to chop.... in a bit of a pickle" instead of looking at all the real data and the possibilities of coming good contracts.

     

    On April 11 Gregory Lewis lowers his price target from 40 to 30 and drops his rating to hold (which most folks interpret more like sell). This causes the lemmings to sell their shares and drives SDRL below $33/share. Now if you had sold on Gregory's downgrade, you would have lost over $6 in potential profit (SDRL closed last Friday June 6th a 39.38) and an opportunity to enjoy the INCREASED dividend of $1/qtr.

     

    I think I will use Mr. Lewis as a Contrarian indicator, because if you bought when he said sell you could have made $6 on the $33 purchase of SDRL (like Go-4-it did) or about 18% in 2 months, plus you will get to participate in the wonderful $1 dividend.

     

    I would love to see a new recommendation from Credit Suisse and Mr. Lewis about SDRL and also a statement about how they made a bad call back when they issued the downgrade and price target mistake on April 11. I know crow doesn't taste that great but its good for your credibility.
    Perhaps we should be listening to "Go-4-it" rather than these "professional analysts".

     

    Long and STRONG SDRL and NADL, See you all in two years $10 higher and with $8 in dividends richer. Got to love it!
    I have promised to keep a record of all the nay-sayers on SDRL and check back occasionally to see how wrong they were. Someone has to keep them honest.
    7 Jun, 11:28 AM Reply Like
  • tankerat
    , contributor
    Comments (332) | Send Message
     
    Yeah, dig, you certainly can tell who knows the actual facts on the offshore drilling space and SDRL in particular...and who does not...

     

    ..making money when these bloggers and the alleged "analysts" run down the SDRL share price based on their personal fantasies about a SDRL "dividend cut"...[a danger which in the real world never actually existed]...is like taking candy from a 9 month old baby while the baby is asleep.

     

    I bought SDRL call options dirt dirt cheap back when this dividend cut myth took on a life of its own in the blogosphere and in the so called "analyst reports"...[all of them are looking foolish now]....as facts have emerged regarding the Seadrill dividend.

     

    Anyone see the West Jupiter contract announcement by Seadrill??...it is there.

     

    Anyone see yesterday's announcement on the day rate for the new RDC drillship not even to be delivered until the middle of next year??...yes..a 2 year contract for the US GOM...you "bloggers and analysts"..look up that day rate...and reflect..

     

    It is right there in the press release...

     

    Maybe you could write a SA article about it..and the ramifications for actual current modern drilling equipment dayrates...

     

    I could but I won't...so..someone else ..do it..

     

    TR
    7 Jun, 12:00 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1070) | Send Message
     
    Keep up the good work tank and dig. Love the new latest postings. Ditto
    8 Jun, 08:16 AM Reply Like
  • Chancer
    , contributor
    Comments (2523) | Send Message
     
    As SDRL approaches $40, CS looks dumb. But in fairness, likely CS did not see the Rosneft cooperation agreement on the horizon.

     

    Re. analysts, buy on the downgrade and sell on the upgrade. Analysts ratings have become contrarion indicators.
    8 Jun, 01:18 PM Reply Like
  • 2839298249
    , contributor
    Comments (211) | Send Message
     
    Chancer, I would say that the analysts were overly pessimistic and got caught up in the groupthink that exists amongst their cohort. With the exception of Ole Slorer at Morgan Stanley, the analysts in the drilling space are awful.
    9 Jun, 09:13 AM Reply Like
  • tankerat
    , contributor
    Comments (332) | Send Message
     
    Ole Slorer is out today with an update after his recent trip to Norway. He retains his $48 SDRL target, says the company reiterated that it has no intention of reducing its dividend, and the company sees clear signs that the market is bifurcating in favor of modern equipment.

     

    Furthermore, Slorer reports several recent excellent dayrate announcements by Seadrill, Rowan, Ocean Rig, and Pacific Drilling [on lengthy contracts.]

     

    So, it seems, as I expected ...the "Seadrill dividend cut" was a figment of analyst/blogger imaginations and the market for modern offshore rigs remains good in spite of all the analyst/blogger negative hysteria and therefore my purchase pf Seadrill January 2016 $40 LEAPS back during that hysteria induced dive to $32.40 will eventually be a several bagger...even as my actual shares are now approaching $40.

     

    Sometimes you need to know which analysts to actually follow...

     

    TR
    9 Jun, 11:14 AM Reply Like
  • saratogahawk
    , contributor
    Comments (1567) | Send Message
     
    Thanks tankerat. Your comments are always valued. Also, I might point out that you were one of the very first to argue that SDRL would not cut the divi. With some of these new annoucements I think that RIG really starts to look undervalued at $43 as new contracts come out but then again what do I know.

     

    Good call on the leaps. Unfortunately, my options calls are often leaps off the proverbial cliff so I don't do options as much now.
    9 Jun, 11:24 AM Reply Like
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