I agree with you this was planned. How many shares do you think ROSFNET bought yesterday at a very nice discount.....there have got to be some very #$%$ off people out there... as for me I just thought owe well it will come back up in August when dividend season comes around I wish I could have bought more yesterday...Maybe next time...
The value of convertibles are very sensitive to the stock price at the time of sale. As they pointed out they still got all of it sold out - but they were sensitive to the buyers as these are the buyers in the future that make SDRL go. Not wanting to burn their bridges was the main reason they didn't want to go forward with it. The shares might have recovered quickly but they might not have and management just did not want to take a chance.
ORFG confirms the hiring of Michael James, P.Geo as new CEO. New hire brings 36 years of
experience to the table.
The whole incident is a head scratcher. I have to assume that it took SDRL several weeks to put the deal together. They had to have concluded it was a good deal, or they wouldn't have announced it in the first place. They then canceled it because of an initial, one-day negative reaction from the market? They should've anticipated that the very initial reaction would've been negative. Anytime the market hears about debt, it thinks the worse. Instead of issuing a press release last night canceling the deal, they should've instead issued a press release emphasizing how the deal was a long-term positive. I've never seen a company change course on a business proposition because of an initial market reaction.
Seadrill will go to the well again, just a matter of when, not if. JF is very creative on contracting out rigs, drop down financing, new ventures, etc. I've owned this for 4 years now, seen plenty f ups and downs Hold on!
When I sold them they were in the money. It was several months ago and I made close to the equivalent of two years worth of dividends. I'm pretty conservative. Prefer to make a lot of low risk trades than trying to make a killing.
Looks like you closed that position a day early. Probably should have just let it ride to expiration and expire worthless. But, $34 is so far out of the money, anyway. There's a lot more of the hefty dividend to be gained by selling closer to the money, and further out to cover at least 2-3 dividends.
I'm always amazed that the most arrogant people are so often the most ignorant. Selling puts is not shorting a stock. Maybe you should read a book, " Investing For Dummies."
Signs of an immature management. (Now we know how to get JF's attention.)
I've been investing long enough to know that selling puts is not shorting a stock . Go ahead and display your ignorance some more.
FWIW SDRL misjudged the market and got burned.....When youre the top dog theyre either nipping at your tail or sniffing...next time SDRL will be smarter ..some here thought the deal was good for longs and some said bad...I don't know who is right but clearly SDRL got it wrong for once, at least in the PR department....glta .
Not sure where you got that ratio, and the professional shorts won't be screwed.
Witness how they will grind it back down until they can cover.
Just curious___ How many shares did you short ? Do you feel any blood seepage from the back side of your body this morning ?
Nothing better than the smell of shorts frying in the morning___
Unfortunately, half the people didn't read the deal's details.. This is the shoot first and ask questions last last mentality of many investors. The deal was not a bad one.
The short interest ratio yesterday was 64.8%. They are completely screwed today as we gap up in the pre-market and at the open. Panic is our friend.
Sentiment: Strong Buy