Seadrill "train wreck" should have been obvious, analysts say

|About: Seadrill Limited (SDRL)|By:, SA News Editor

Seadrill (NYSE:SDRL) fell another 6.3% in today's trade after shares were cut nearly in half yesterday following the company's warning for shareholders and bondholders to expect steep losses in a debt restructuring.

"Day traders are the ones pushing the price up and down,” Clarksons Platou analyst Anders Bergland tells Bloomberg, as SDRL is now at the mercy of short-term speculators as the biggest funds avoid the stock.

The risks of equity dilution and bankruptcy already had been voiced by SDRL and should have been “obvious,” according to Canaccord Genuity's Alex Brooks, saying “We seem to see this over and over again: Shareholders are willing to trade stocks on hope value right up until the moment the train wreck becomes obvious."