Oil will come down hard when Europe tanks. That means SDRL will come down too. I might nibble b/n $18 and $20. Although we might be at those low levels for a while. Hopefully dividend will not be cut when oil is around $60.
Yes it was a great buying opportunity at $24 and change, now I think it is time to take some profits off the table unless you are solely here for the dividend.
Good luck to all.
Congrats to those who bought on the dip.
You might be right. It might be the time to take some money off the table. I have made a nice, quick profit. I have been thinking about either selling about half my position or writing a covered call at $35.
I have been doing just the opposite. As SDRL dropped below $30 I loaded up on it. My thinking is something like this: this society is still based on oil and China is industrializing. This means that the demand for oil is growing. Longterm, the demand is there for SDRL. It has the cashflow to cover its current dividend. So, I bought and I will take the dividend. Whether my timing was perfect or not is ok since I will be getting paid to wait.
Now that's the $64 million question..When, how, what will the pain in the az Euro garbage ever end ? IMO oil will not go down to $60..If SDRL ever went to $18, be sure the entire market goes to 8500 along with it.
So, the trading is news driven and short lived on a daily basis.
Welcome to the computer controlled casino.
ps; We haven't even dealt with the impending headlines coming about Italy + Spain.The Eurozone is a month to month deal. It's college football season now..And that's a better play than the market ..
GL boys and girls !