Seeking Alpha

Seadrill (SDRL -1.9%) is cut to Neutral at HSBC Securities, which notes industry fundamentals...

Seadrill (SDRL -1.9%) is cut to Neutral at HSBC Securities, which notes industry fundamentals remain strong but the surprise factor is limited. The firm says $4B of ultra-deepwater contracts in July are a clear sign of drilling market momentum, but upside to market expectations is more limited vs. elsewhere in oil services. Also, SDRL plans to sell $1B in unsecured notes via a private offering for institutional investors.
Comments (15)
  • You really have to question the reason for this cut.
    10 Sep 2012, 10:58 AM Reply Like
  • Consider this a blessing from HSBC. Those of us who have been in SDRL for some time have grown nervous with the new interest in the media for SeaDrill. Kinda prefer flying under the radar on this one. Like Goldman Sachs, we have done well over the years taking the other side of the trade against HSBC.
    10 Sep 2012, 11:29 AM Reply Like
  • Totally agree Crude,

     

    Who are these idiots downgrading, unless the wanna scare some wimps off so they can load up. This is a killer business that will keep growing for years to come until we are in a position that we no longer need to be a net importer of oil. Brokers are not trying to give us advice. They want our money.
    19 Sep 2012, 06:03 PM Reply Like
  • They probably went short Friday.
    10 Sep 2012, 11:30 AM Reply Like
  • Another buying op coming up.
    10 Sep 2012, 11:34 AM Reply Like
  • I think so. It's not always easy to be patient, though I think it is worth waiting for SDRL shares to decline a bit.
    10 Sep 2012, 02:55 PM Reply Like
  • Put the analyst at HSBC in the camp of the analysts who really don't get it. I have found that overall most of the pro analysts are wrong a tad more often than they "guess" right.

     

    Anyone know if HSBC had a buy recommendation when Seadrill was at much lower prices?
    10 Sep 2012, 12:03 PM Reply Like
  • Initially, or anytime, a "Buy" from HSBC ? Not from my research................. Long on SDRL !
    10 Sep 2012, 02:35 PM Reply Like
  • The only thing about HSBC I really like is their HCSpB stock I got for $25 in an IPO (8% qualified div), it is now $27.96.
    10 Sep 2012, 12:29 PM Reply Like
  • It doesn't make sense to cut the rating especially when they are just about guaranteed the income with signed long term contracts.
    10 Sep 2012, 12:33 PM Reply Like
  • another "pro" analyst, without a clue
    10 Sep 2012, 01:04 PM Reply Like
  • "...the surprise factor is limited."

     

    The downside of long term contracts?
    10 Sep 2012, 01:28 PM Reply Like
  • "upside to market expectations is more limited vs. elsewhere in oil services."

     

    What do they like better in oil services?
    10 Sep 2012, 03:23 PM Reply Like
  • If you liked Seadrill before analyst cut, do nothing. Nothing has changed at Seadrill. This is what analyst do...move the ratings around...it's their job.
    There has been, currently, and tomorrow - money being made with Seadrill.
    10 Sep 2012, 10:12 PM Reply Like
  • I only consider what analysts say as one of my data points. I have learned from the past that the pro analysts are wrong a bit more often they are right and less effective than flipping a coin. On top of that there is a basis problem with ethics with all of the big firms.
    11 Sep 2012, 12:22 PM Reply Like
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