written by reader What’s the consensus on Seadrill? The company was supposed to have the latest equipment and a

By backoffice, June 11, 2018

big bankroll to weather any difficulties in the foreseeable future. Unfortunately they didn’t have enough, cut their
dividend and ultimately filed for bankruptcy. The stock has bounced back slightly but what are the chances they see a turnaround?

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bobarinoTravis Johnson, Stock Gumshoe Recent comment authors

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Travis Johnson, Stock Gumshoe

Seadrill was a stock I wrote about a lot back in 2006-2008, but they certainly did fall on hard times, fueled by the massive amount of leverage in the business. Normally in bankruptcy the shareholders end up with nothing, but in this case it seems like the bondholders will own 98% of the newly restructured company when it emerges from bankruptcy, and the current equity holders will own 2%. It will be a much better company with so much of that debt wiped out, but it’s also quite likely that the lenders who get shares of Seadrill will sell them… Read More ยป

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I was looking for offshore driller stocks and found this one. Didn’t know any background so bought RIG instead. Rode it up a while and hopped off with a nice 40% profit. If I had chosen Seadrill by random chance at the end of June before they came out of bankruptcy at 10 cents my $10,000 investment would have gone to $2 Million when the stock popped up to $20. Hadn’t done the research on the company just looking for drillers. Never know what you will wander into or out of in the market.

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