All the news today going to wait and see how the dust settled and affect of Divy, might be a good time to add to my positions but not doing anything for a few days going to be a lot of panic selling and I have some cash on hand will jump in and double my position, I am thinking long term 5 years SDRL been pretty solid and not one Divvy has bounced.
Glad I bought at yesterday at 5% or close any pop today good, like i said 5 year and to the panic sellers, not the smartest one here on the board when it comes to stock but like different opinions. I ahve done enough homework that buy and hold is the best play.
And before Barmy corrects my grammer, had a typo and not here to write articles, just listening to new ideas and other peoples perspectives, since its my money I will make the decisions and so far the last 3 years of investing in mostly dividend paying stocks actually all ecept BRKB I am up and happy with a profit. I have another 20 years till retirement and dividends are reinvesting when I get to the point that my dividends cover my living , then i will quit working. I know a market correction is coming and everyone does but no one knows when, I will continue putting away money into my stocks each month and not worry to much about the day to day.
"And before Barmy corrects my grammer,..."
It's spelled "grammar." Everyone makes typos, but not every error can be explained away as a typo.
Correcting spelling and grammar on Yahoo boards would keep a lot of people very busy.
I could not wait, used half to enter 5% down and more when the time is right, I have not seen anything that says dividend is in danger, this stock has ben a money maker for me and my time frame is 5 years out so bombs away.
I'm not sure why people feel the need to point out others errors in spelling or grammar. It's petty and a waste of everyone's time. We're all here to find valuable info that others may have found and are kind enough to share and valid opinions based on facts. Why don't we stick with that and quit all the nonsense.
Potential issuance of 19/20mm shares - about 30% premium to today's market is about $52, and then 1b/52. This is about a 4% increase in issued shares (19/469). 5 years from now - of course premised on our share being worth 30% more.
Knee jerk reaction to new shares, but really - 4% dilution in 5 years. These guys know what they are doing - let them do it ! This is not going to have any adverse affect on the dividend.
Some of you folks are slow.
The market is taking it down ~5% TODAY because there will be a ~5% dilution near-term from the conversion of the existing $650Mill convertible debt.
The down today really has nothing to do with the potential dilution from the $1Bill convertible due 5 years from now, which will only occur at a price ~30% higher.
I don't see how you draw a line between this debt refinancing (and expansion) and the divvy.
This company seems to separate the two. They use cash flow and earnings to pay O&M and the divvy. They borrow money to buy rigs (capital assets), which get depreciated. Some people think they should be using cash flow & earnings to buy rigs and eliminate the divvy.
The debt is being increased because they need more capital to finance rigs. And money is cheaper now than when they issued the $650Mill debt. If lenders are still loaning money out at still lower rates, then why not do it. They lenders must think its a safe deal.
I will be adding in the middle of hopefully some panic selling. I would think the panic would be at its highest today. As I feel that the divi is safe even in the next tough year - the price of the stock day to day matters little.
A couple years down the road the demand for the new expensive rigs will be high and SDRL will be in a great position to command some very good rates. Locking in 10% plus today for a small risk for the next year or so is a good gamble.