That's a grand total of $195 (less commissions and listing it on your tax return)... Hardly seems worth the effort!
Ignore them...it's their money...the supply glut isn't going anywhere anytime soon, in fact, there was an article today about Iran having boosted oil production to over 2 million barrels per day much sooner than expected. Iran will also continue to ramp up production for the remainder of 2016...I'm afraid SDRL will have no choice but to trade debt for equity going forward diluting shareholders...
If you knew how to do the math, you would see the offering in aggregate is around $2. Do the math and quit reading Motley Fool. But since you are reading MF, don't forget what they said about this offering diluting shareholders by 1.5%, but only reducing the debt by less than 0.5%.
The supply-demand ratio isn't going to "reach equilibrium by next summer" as you state. Ask any oil trader and they will tell you not until late 2018 or into early 2019. We have years of supply of oil, nobody is cutting production and economies (both AM and EM) are slowing and shrinking on a real basis -- not nominal.
The kicker is the US energy sector is trading at 7x EBITDA (this prices WTI at $70 - $80 per bbl) when the norm is 1x to 2x. And, with the 2.5% rise of WTI over the last two weeks, the oil price is now almost 30% above the $38 per bbl fair-value level as suggested by the USD.
Btw...you say you're a risk taker. How do you measure risk? What model(s) are you employing?
7 degrees? LMFAO! Sure you do. You forgot to tell everyone how good looking you are because your mother told you so.
SDRL down 13.3% since we spoke last week. See you around $2.
if you think $3.22 is a good price, then with it trading at $3.11 you must think it's a really good price. just wait until it starts trading below $3, then you'll think it's a great price.
Ha. I would have expected a higher share price than $3.12, with oil at $48/bbl. So don't listen to me. Barring a surprise dilution or R/S announcement, I'm not expecting $2.50, or $2.20.
so given the negativity, do you think this stock can reach below $2.50 this week.... trying to guage my buy entry points... would love to buy a boat load below $2.20 range... may have to wait till Thursday/Friday since the general consensus this will falter then.
- Exxon fee for cancelled rig contract. Could be a short term positive depending on when they record the fee, but overall it is a negative.
- sale of shares of Malaysia's Sapurakencana Petroleum. Raising cash again.
- Recent debt for equity swap. $55M in debt cancelled in exchange for SDRL shares at almost double the current price.
- RIG and ORIG earnings weren't as bad as expected.
Seems the big boys/mm's & most small investors are sooooooo negative on this stock and such high % of shorts with the very tough oil environment. Is there any rationale/reasoning that there could be a glimmer of "hope" on the Qtly report Thursday??? Has anyone ever heard of a stock being over %75 "short"? Seems the percentage of this stock "being short" keeps growing and growing. Seems sdrl can not survive this downward momentum. Any serious thoughts out there??