i brought more today. j.f has always used huge amounts of debt to buy newer more efficient rigs this is why they have the equiptment that is wanted. i dont see why anyone would not buy if only for the dividend.i will bail out of sdrl at the speed of light if i see big rig drops or day rates fall. this is a once in a life time stock that must be watched daily,especially if you have a large position.lol
This is pretty simple, just ask yourself the old question "If you cant explain why you like a stock to your grandchild in one minute dont buy it: Look at oil, the backlog , the opening to new areas, and where the world is going on oil. A no brainer. Big deal if it missed earnings
good question. I can only assume the 'analysts' don't really "get" sdrl. why they like Noble RIG and other similar firms with lower dividends and older equipment, I just do not understand. It is true that John Fredriksen built SDRL using a great deal of debt, so there is leverage. Having said that, their cost of money is not that high.
At the same time, most of the rigs that are currently employed have several years of employment ahead of them. That is the part I don't understand, most of all. SDRL has a strong backlog, and I don't see the oil companies backing off their long term drilling programs. After all, they all have to find replacement reserves for the oil they are selling today, as well as the natural gas they are selling.
Shell Oil, for example, is spending megabucks to find and replace natural gas reserves. With more countries appearing to back away from Nuclear (Japan being the biggest example, but not the only one), there has to be a replacement fuel - and that appears to be natural gas.
In the mean time, I collect my dividends and cry all the way to the bank. By 2015, I will have gotten all my investment back in dividends, and I will still have the stock. I think that is the way JF looks at it also.
Those that buy based on qtrly earnings are disappointed and selling.
Those that buy for the div are waiting for the best possible price to buy.
Those that are only interested in share accumulation will wait till after the divy to buy.
Hence, more selling than buying, but there may very well be a bounce towards the end of the week.