Was there ever a time when investors did not worry about any of JF's company's debt.
It's always been a problem and that's been his business model all along.
When you can make a fortune using other people's money .
That's why it's so important to keep one eye on the sectors outlook, because these stocks can drop real fast with any hint of a downturn. Hence the large div payout.
I don't expect any run to 40 until possibly the next div.
But you gotta buy in somewhere to get it, so I am scaling back in starting today.
I too thought about buying in today at these levels, it's been a while since SDRL was under $36.5! So far the only "Seadrill" play I've made today though is adding to my NATDF position. It's lower drama, has possible NYSE-listing upside, and unlike SDRL it should be paying out a div for this quarter.
The problem is they doubled up the dividend in December to benefit the rich. That hurt the capital appreciation short term. Take advantage of the lower price because come next quarter the dividend will be restored.
Yeah, the share price hasn't really recovered from it. In retrospect a dumb move that, One that was apparent to some of us when from the start, which really has to make you sorta question the judgement of some of those involved in managing this company.
Well next Thursday is the next earnings release for Seadrill. If they disappoint this could be headed back down towards its 52 week low in the low 32s. Hopefully they've got something decent in store though and this heads back up towards 40
Caution certainly is called for here. The price of oil/gas is heading lower ample supply makes this a stock to be
put off for another day. My thought we see some new lows before all the weak hands are gone.
Sentiment: Strong Sell