Hi
Just wondering your thoughts on Seadrill? Is it too early to buy or do you think this is the bottom?
I know how much you like Seadrill and now the divy is 12%??
Just wondering if you think this is over sold or going into 20’s just your opinion
Thanks
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My last look at Seadrill had me thinking the stock should trade in the $35-40 range until we get an idea of whether day rates will really tick up in 2016 as they expect (pretty much everyone expects a flat 2014/2015 with lots of supply and oil companies saying they want to cut their budgets). So clearly I’ve been wrong about that (it’s down to $32 now, thanks in part to worries about their Rosneft deal getting hit by sanctions and to falling oil prices, oil’s down about 10% since midsummer).
I don’t expect offshore spending to fall off as dramatically as many of the analysts seem to, but I could be wrong — my last conclusion was that I want to hold the stock through this downturn because I think the sector will improve and they’ll be well positioned when it does with their new fleet… and because they’ve specifically said they have no need to cut their dividend and have continually made opportunistic deals like the recent ones with Rosneft and Pemex. But they do carry a lot of debt, and they are volatile, so if things blow up they will be hit hard. Not as hard as 2008, I expect, since they had almost no revenue then, but hard nonetheless. I’ll write something if I change my mind and buy or sell, but for now I’m just holding (and reinvesting the dividends).
buying seadrill still adding to position when not thinking of selling have a drip when price is lower smile with extra shares wont stay down forever good company and management
Seadrill got hit real hard today, harder than 2008. Can you give us an update on your thoughts?
Taking a serious hit today… I’m considering some options at the least.
Still waiting to hear thoughts about Altius Minerals Corp. Thanks.
Top article on the homepage has my most recent thoughts