Atwood optimism no help today as Seadrill sinks on convertible sale


Johnson Rice is optimistic about Atwood Oceanics (ATW -2.3%) despite lowering its 2014 EPS forecast to $4.63 from $4.76; the firm considers ATW among its top picks among offshore drillers, with its combination of a well-contracted fleet with a discounted multiple vs. its peers on visible earnings growth in 2015.

ATW and other offshore drillers are lower after Seadrill (SDRL -4.8%) announced it would sell $1B in convertible bonds; RIG -1.7%, HERO -1.3%, ESV -0.9%, RDC -0.9%, HP -0.8%, DO -0.1%.

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Comments (11)
  • tennis44
    , contributor
    Comments (70) | Send Message
     
    Buy sdrl at this price. A good chance.
    8 Jul 2014, 12:23 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1357) | Send Message
     
    Great time to buy SDRL because the convertibility is based on todays average price SDRL should bounce back and hit $40 in the near future. Good oppurtunity to make $2 to $3 a share.
    I will buying more today.
    8 Jul 2014, 12:38 PM Reply Like
  • rrs2205rrs
    , contributor
    Comments (131) | Send Message
     
    Agreed, I just doubled up my SDRL position.
    8 Jul 2014, 02:01 PM Reply Like
  • Javelina
    , contributor
    Comments (1140) | Send Message
     
    I just added to my SDRL stash. Great BUY opportunity in MHO!
    8 Jul 2014, 12:56 PM Reply Like
  • earn
    , contributor
    Comments (2) | Send Message
     
    what about RIG??
    8 Jul 2014, 01:04 PM Reply Like
  • long_on_oil
    , contributor
    Comments (1357) | Send Message
     
    RIG is a SDRL want-a-be.
    8 Jul 2014, 01:06 PM Reply Like
  • longoil
    , contributor
    Comments (762) | Send Message
     
    Even if the stock price of SDRL goes nowhere, I do enjoy the 9.95% dividend while I am waiting.
    8 Jul 2014, 02:35 PM Reply Like
  • elvislevel
    , contributor
    Comments (840) | Send Message
     
    But SDRL was all set to make more money than God and start paying down it's debt, why is it now taking on still more debt? I am so confused.
    8 Jul 2014, 05:07 PM Reply Like
  • Ilioula
    , contributor
    Comments (39) | Send Message
     
    It is the application of leverage. Mgmt. sees opportunities. Look only at the potential of the Rosneft deal.
    8 Jul 2014, 05:17 PM Reply Like
  • Ragingmoose
    , contributor
    Comments (124) | Send Message
     
    SDRL was sold buy smart money but RIG heavily bought.
    9 Jul 2014, 08:51 AM Reply Like
  • Illuminati Investments
    , contributor
    Comments (8897) | Send Message
     
    Why is everyone so enamored with SDRL? Must be the debt-fueled dividend, I guess.

     

    ATW is cheaper on almost every metric and they are growing faster without leveraging nearly as much.
    31 Jul 2014, 12:41 PM Reply Like
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