5 Myths About SeaDrill That Could Cost You Real Money
- SeaDrill boosters often cite numbers (backlog, yield, day-rates) without placing these figures into context. We address 5 common myths about this stock.
- SeaDrill proponents cite day-rates on fixtures that were negotiated 12 to 18 months ago to argue that the market for new rigs hasn't softened. The supply-demand balance tells a different story.
- SeaDrill has a roughly $20 billion backlog. The timing of contract expirations and the likelihood of securing fixtures at similar prices much more important to cash flow.
- Forget stock price and yield, industry fundamentals ultimately will dictate SeaDrill's performance.