With terrible earnings, oil down, rig down-time up, no dividend in sight, a market correction looming, and debt sky high, this one is going down for the next few months. best to do what eventually all the money is going to do and sell and wait for a better entry point in the low 30's. Otherwise you are just holding dead weight in your portfolio when you could either preserve your capital or find a better investment for the short term. just my opinion, squander your capital on this stock if you wish.
=/ it seems you could be right... even if SDRL is poised for positive growth (and although there is some decent looking resistance ~$36), the down side to $32 is possible. If we flirt with $32...and that level breaks, who knows where we'll end up for now. I'm unfortunately still long, but after reading your post and thinking about it, I am considering getting out with 0% gain on my overall position (aside from the nice dividends) and looking for a better place to enter IF things within SDRL start to look a bit more promising. My long-term has gone from positive to questionable if long-term = 1-2 years :)
I am 100% agreed with your analysis on SDRL. However, this market is not logical anymore. It is manipulated by the rich with support from the government. Small fishes will eventually be eaten. Don't be greedy, take small profit if you can. Get a stock broker who charges low commission.
I personally don't see it tanking. Seems like there is good support around 36. I sold SDRl after qualifying for the 2 dividends in December and bought MMLP and collected their dividend and a few dollars a share in price appreciation (during which time SDL traded roughly sideways) and then sold out of that. Have been buying SDRL again each time its dipped in thelow/mid 36's lately. No div until June, so I'm just looking at it like a growth stock until then. On a related note, I've been reading lately that the nuke issue in Iran is getting pretty grim (see the latest issue of Time) and if we or Israel are forced to take military action between now and early 2014 to stop them, both oil and gold are going to go much much higher.
Could not agree with you more.
Earnings misses now 3 THREE quarters in a row AND accelerating. If more than a trend, and I think it may be(JMHO), it will and should tank.
With the huge amount of debt the company lives with, and the fact that NONE of these research firms covering SDRL are nothing more than mouthpieces(of hope) for the institutions buried in this thing, I 'll sit and wiat.
This is a cyclical industry......at the very, very least NO bargain here.