SDRL thoughts
by pfuchs | June 30, 2014 10:44 am
First, I salute your business model; when I first found $G, I was pleased to subscribe, I consider it an investing rosetta stone. I am an emeritus chemistry professor and have been learning the ropes of the stock market for the last two years. During that time I invested in SDRL and continued to purchase it additional 5 times on the way down to $35. I now have a weighted average of $37 and am happy to hold while collecting the dividends[1]. I expect the next two years to be good for SDRL based upon their new equipment and existing contracts.
Endnotes:
- dividends: https://www.stockgumshoe.com/tag/dividends/
Source URL: https://www.stockgumshoe.com/2014/06/microblog-sdrl-thoughts/
Any thoughts on SDRL at this time now, October 3rd, 2014, last price check: $24.28 @ 3:56 PM EST.
We’ll, it fell a lot more than I thought it would. I expect Russia will not be under effective sanctions in 2016, and that oil prices will be above $90 then, so if those assumptions are correct I think Seadrill will be ok in a year. But I didn’t expect it to dip below the low-$30s given their ability to continue the dividend, so I may just be wrong on this one. I’m still holding, personally.
I am getting tempted by SDRL right now to be sure. I have not taken a position but the yield alone right now offers considerable downside protection despite industry headwinds. The company is well positioned with probably the best most modern equipment in the industry. Let’s hope that profits keep debts at bay.