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DividendInvestorLA

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  • Seadrill's Cash Position Is Getting Better [View article]
    $31.37 is the next resistance level, below that it's $24.68, which I find absurd, but then again, I do find SDRL yielding 11% totally absurd anyway...

    The chart has rarely been predictive with SDRL however (at least for me).
    Apr 18 02:17 AM | 1 Like Like |Link to Comment
  • Noble profit surges 70% as drilling fleet grows [View news story]
    Do you know off-hand how recent Noble's fleet is?

    I agree with you, though, all those drilling rights auctioned, companies finding oil where they're looking... the future is clearly very, very cloudy... ;)
    Apr 18 02:14 AM | Likes Like |Link to Comment
  • Seadrill Part 2: New Jackup Contracts Promise Revenue Growth And Improve Forward Earnings Visibility [View article]
    Bad news keeps coming for the drillers. Will anyone ever want to drill anywhere on earth again?!!!! [just in case you can't tell sarcasm - that's what it was]
    Apr 18 02:11 AM | Likes Like |Link to Comment
  • The Market Seems To Believe Veolia Has Turned The Corner [View article]
    Another positive is that Dassault Systemes sold its position. They were essentially rowing against management and now presumably everyone is guiding the Veolia ship in the same direction.

    Technically, though, it looks like it is hitting a ceiling around $20.
    Apr 18 02:06 AM | Likes Like |Link to Comment
  • Seadrill: Now An Attractive 11% Yielder [View article]
    You explained it much better than I did. :) Thank you for the very clear explanation.

    As you pointed out, focusing on debt alone is very misleading. It all depends what you do with the debt and if it is productive.
    Apr 18 02:03 AM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    I entirely agree saratogahawk.

    Then again, his behavior speaks for itself and people listening to him have only themselves to blame, when they could have been listening to you. :)
    Apr 17 02:10 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    You are a victim or "talking head orthodoxy".

    Because talking heads can't be bothered to actually know stocks before opining., they're peddling a 'if the dividend is high it's automatically suspect" line, which is in my opinion, nonsense.

    I'll give you a stock like HCLP as an example of why. I started my position when it was yielding a staggeringly "suspicious and dangerous" 14%. Clearly, as the "wise" people "knew", a dividend cut was clearly in order.

    Well, now the stock yield 5%... after a dividend increase!

    I've had a similar (though no yet as spectacular) experience with EMES.

    Simplistic pseudo-conservative "analysis" will not serve you well.
    Apr 17 02:08 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    Still holding that stock you seem to hate with a passion? Do yourself (and us) a favor and sell it. You'll sleep better and you won't have to keep posting negative posts that bring nothing to the discussion.
    Apr 17 02:04 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    So well said. I think we were two of the very few people on SA to maintain there was never a chance of a dividend cut.

    It reinforced my negative opinion of analysts that they didn't see the dividend increase coming.
    Apr 17 02:03 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    Germany has been stepping back hugely from its "all-green" policies as they have resulted in higher priced energy and a reliance on Russia for their needs (as you pointed out solar in Germany doesn't work all that great in the winter when electricity demand is topping, hence a still huge reliance on nat gas.
    Apr 17 02:00 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    With "if"s you can paint any stock black. The reality is that fracking is underway and all it has done is stabilize oil prices. Given the political winds against its full development (in the US about 50% of people are afraid of it), I don't see any short-term acceleration.

    Generally you are right, but every time we get political actions like those taken by the US administration last week, it's good for offshore drillers.
    Apr 17 01:58 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    Hi Saratogahawk!

    We usually agree but I must object on your point #2: Even if we can't export crude oil, if we produce more, we'll buy less abroad, which will impact the price of oil (albeit indirectly) by reducing our demand for imports. That said, with the government trying to slow fracking, I don't think it will affect the future prices all that much, given continued demand.

    Otherwise I entirely agree. You make a great point about auctions, something most talking heads never mention and which confirm offshore drilling is under no threat of disappearing.

    Other great point about new energies. Some of our politicians talk as if they could order them by decree, but sadly it's not the case (who wouldn't love, say, a cold fusion unit in every garage?)
    Apr 17 01:54 PM | Likes Like |Link to Comment
  • Seadrill: Valuation Doesn't Make Sense If You Believe In The Stock [View article]
    When you're getting a stock whose P/E is less than half its growth, you got yourself a bargain generally, unless your crystal ball tells you we're going to stop using oil and gas next year.
    Apr 17 01:48 PM | Likes Like |Link to Comment
  • TransCanada Tries A New Clean-Tech Pipeline Solution [View article]
    Thanks for the link! Very funny!

    I understand as the author you feel a responsibility to answer, and it's much to your credit (many author seldom respond - maybe because of that problem). At a certain point, though when you identify people who aren't interested in responses, I think it becomes OK not to respond.
    Apr 17 01:45 PM | Likes Like |Link to Comment
  • Seadrill's Cash Position Is Getting Better [View article]
    SDRL sells part ownerships to SDLP, a company it partly owns. That means investors in SDLP are picking up part of the tab in order to get part of the revenue and SDRL keeps the rest.

    The upside for SDRL is less debt (as it gets cash when it "drops down" the units. The downside is reduced future cash flow. The other upside is since it essentially widens the financing ability of the company (through investors in SDLP) it can invest in more rigs and thus grow the company(ies) faster.

    I hope this is somewhat clear. :)
    Apr 17 01:42 PM | Likes Like |Link to Comment
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