I added more around 19 and believe we are lucky to see this price again. Of course, Oil falling is what is driving it lower and I believe the service piece will continue to drive the valuation. If they can catch a break on the drilling part, this division will sell itself later this year I believe. We just need a few good breaks from drill-bit wise and of course a quiet weather related season in the Gulf.
The company reputation has been the issue and why this stock as you recognize has not been able to sustain anything price wise.TO turn into a buy and hold type of stock from a trading vehicle takes time and focus. we are fortunate this company has taken this philosophy to heart. Next stop in my book is 22-23
this company run by gang who no can shoot the ball straight. The ceo is ex world champion disco dancer and now he surround himself with comedy team for to make the variety show that feature various comedy acts combined with some truly breathtaking disco dancing, all this going on while share price dive like hungry duck trying for to catch the tasty fish.
Great post Bas. No question that a straight debt issuance would have been better for shareholders, all else equal. When you consider that the CEO has been a big open market buyer of shares, you have to consider that "all else equal" is the operative issue. Is there a yet unclear strategic reason that they chose this route or do they simply need a new CFO?
The question is does it clear out the $22 price? With Oil at these levels the real kicker is can they lock in hedges that insure these higher prices...Budget @$104 get $124? 2mm bbls @ $20 per bbl is an extra 40mm or approx 40c per share? This alone should absorb the dry dock issues,add even more cash and paydown even more high yield notes....Why did S&P upgrade the company debt y'day? This stock has $35 written all over it... Keep buying is the only unsolicited advise I know to give....not that anyone asked
"Keep buying is the only unsolicited advise I know to give....not that anyone asked."
It's sound advice. It has "turnaround" written all over it. I have shares left from sub 5 but, all new adds have been leaps. Without a dividend and little time decay, why buy the shares?