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DividendInvestorLA

DividendInvestorLA
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  • Seadrill Resolves Tax Dispute With Norwegian Authorities, Here's What We Know [View article]
    It's very helpful. Thanks Power Hedge!

    What is mind-boggling to me is that so many countries try to impose retroactive taxes. It's bad enough planning for what you know, but now you have to divine what taxes will be applied retroactively. I always thought that laws could not be retroactive was a basic principle of Western Law, but that principle is trampled again and again by governments looking only at short-term gains and not at the damage unpredictability does to economic activity.
    May 21 01:41 PM | 11 Likes Like |Link to Comment
  • Drilling For Yield In The Golden Triangle [View article]
    I wish I could be more positive, but dividends aren't paid out of net income, but cash flow and when it comes to debt, what it's used for is really the key.

    Unless you are considering a much longer-term outlook, SDRL's dividend is absolutely not in play. It was just risen and management said it would be at least maintain for the foreseeable future.

    In a much longer-term outlook, you can call anything and everything "unsafe", in my opinion.
    Mar 17 01:45 PM | 11 Likes Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    John Frederiksen's interests are actually linked with common shareholders as he gets his pay from dividends.

    The idea that he is trying to pull a fast one is insulting to him and ridiculous on its face.

    I, for one, would love it if all the CEOs of the companies I own had their interests aligned with mine.
    Mar 12 07:26 PM | 11 Likes Like |Link to Comment
  • Seadrill Discusses The Downturn In The Offshore Drilling Market [View article]
    Since he is a billionaire and I assume you're not (apologies if you are) he seems to "get it" very well...

    I personally do not understand the "almost manic obsession" of the people pushing the "dividends or growth" orthodoxy, so there...

    I'm on the side of the guy who doesn't "get it"...

    Companies should be managed as companies with long-term objectives in mind, not to please a bunch of always-wrong analysts and make fees for investment bankers.

    John Frederiksen has aligned his interests with ours.

    I must also disagree with you about a share buyback. Most of those don't work for individual investors. They are indeed mostly "pipe dreams".

    One final question: Are you a short? If not why do you bother following a stock you clearly hate with a passion?

    I personally don't have that kind of time.
    Mar 12 07:31 PM | 10 Likes Like |Link to Comment
  • Seadrill: Should You Buy Or Run For The Hills? [View article]
    Frankly the SDRL chart rarely says much to me. However, the fact they just signed contracts for four jack-up rigs and an extension for a fifth one speaks volumes.
    Apr 2 04:15 PM | 8 Likes Like |Link to Comment
  • A Look Inside Seadrill's Debt [View article]
    Great article. I know a LOT more about the company now. Thank you.
    Jul 20 02:31 PM | 8 Likes Like |Link to Comment
  • Seadrill: What To Expect? [View article]
    Sorry but have to disagree with most of your post Budavar.

    Let's start with the positive: I do agree that they could be even more communicative about the fact they have a new, high-tech, safer fleet, which places them at a competitive advantage to the rest of the group, although I don't think it'd change the opinion of a single of the "analysts" given they refuse to do the homework.

    I am quite happy SDRL isn't doing a share buyback, as those often don't work. Dividend cash in my pocket works every time. :)

    Also, you really can't say that "shareholder assets have evaporated" when in fact shareholder equity has risen quite significantly this year.

    One should not equate stock price with the value of what you're buying when you buy the share.

    Now you might feel the price was too expensive before, but the underlying value has grown.

    Finally, I entirely disagree on placing blame for the stock price on the management and Board of SDRL. They are responsible for devising and enacting the strategy of the company and to communicate it clearly to those who want to hear.

    The fact analysts don't want to and there's enough people who still believe analyst ratings are worth anything is not really their fault.
    May 1 01:03 AM | 7 Likes Like |Link to Comment
  • Seadrill's Path To Problems [View article]
    It's very hard to criticize an author and not have him feel "personally attacked". I understand that.

    However, when an article is as shoddy and pointless as this one is. How else do you say it?

    I have tried not to attack the motivations of the author, even though I'd never have the guts to publish something so skin-deep, but this article is just terrible and clearly we're not the only ones to think it.

    I welcome real negative arguments, but this is just a "me-too" article that seems to have no point other than try to generate a few quick page views.
    Feb 19 01:08 PM | 7 Likes Like |Link to Comment
  • SeaDrill Will Regain Its Lost Value [View article]
    I just don't get how the people who are upset that SDRL is borrowing to build brand new rigs (what their business is all about) will be happier if SDRL borrows to buyback shares.

    The idea that you can't have growth and a dividend is financial orthodoxy, plain and simple and frankly I don't quite care how many investors are "spooked" by not understanding SDRL's strategy.

    I trust SDRL to effect its plans and make us a lot of money as it does, and the last thing I want them to do is listen to analysts and supposed experts who tell them that they don't know what they're doing...
    Feb 4 07:42 PM | 7 Likes Like |Link to Comment
  • Seadrill: An Attractive 10% Yielder [View article]
    Sorry, but why would anyone talk about a dividend cut for a company that has always increased its dividend.

    Any company can cut its dividend of course, but there's absolutely no particular reason to think SDRL is about to do that. Their business and income are growing and they made enough money earlier last quarter to cover the dividend for the whole year!

    High dividends (especially growing ones) actually do provide a trampoline for the stock price.
    Jan 29 03:11 AM | 7 Likes Like |Link to Comment
  • Seadrill: Should You Buy This 11%-Yielder? [View article]
    Sorry to be so negative, but in the first two paragraphs, I was wondering if you were talking about SDRL...

    SDRL has a great backlog, how is it not "sustainable"? The "negative free cash flow" is a result of investments in in-demand product. How is that not a good thing?

    The way you write about a "pause in investments" makes it sound like the company changed its strategy. It hasn't. It always was going to build rapidly a new fleet to respond to its anticipation of the market, anticipation which is coming to fruition with the bifurcation we are seeing between old and new rigs.

    It also hasn't "changed its dividend policy". It has announced the dividend would be at least kept at the same level, which is what it has done for years, and that it is building a reserve for future increases. I'm guessing you are referring to the fact they said the dividend was plenty given the current price of the stock and increasing it wouldn't be a priority, so I'll give you partial credit on that one.

    I am sorry, but for my money, you entirely misrepresent the company, its strategy and actions.
    May 15 02:06 PM | 6 Likes Like |Link to Comment
  • Seadrill's Path To Problems [View article]
    I have decided to stop responding since that person is not interested in anything any of us has to say.

    His presence on this board has become a waste of time to me.
    Feb 23 11:49 PM | 6 Likes Like |Link to Comment
  • Seadrill Expects Forward Growth And Offshore Drilling Industry Strength [View article]
    Sorry to read you were influenced by analysts who, as a group, have a storied history of being wrong.

    The reason for the downgrade is laughable as the debt level has always been a "problem" for people who don't like the company.

    Long and rebuilding my position on pullbacks.
    Jan 23 05:05 PM | 6 Likes Like |Link to Comment
  • Seadrill: High Earning Visibility Makes It A Buy [View article]
    I strongly object to the characterization of the dividend. It isn't a "hemorrhage", it is a boon to investors. The dogma that growth companies shouldn't have a dividend is just that: a dogma. I for one am glad SDRL is ignoring the nay-sayers. :)
    Dec 3 05:10 PM | 6 Likes Like |Link to Comment
  • Seadrill's Dividend Does Not Look Sustainable [View article]
    I have to disagree. My first reaction was "another article that will tell us that the earnings don't cover the dividend -danger - danger- danger", but then I remembered that those articles are actually bullish indicators.

    This is the same article that keeps being published again and again. meanwhile, SDRL executes and the dividend grows.

    Also, if you care about earnings, they made enough in the first quarter to cover the whole year's dividend...
    Nov 11 02:29 PM | 6 Likes Like |Link to Comment
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