Well then how does a stock drop over 20% from its Monday intraday high? I am holding but something must be up.
BK I don't know if JF has exited, but I do know that somebody will have to pay the piper sooner or later and it won't be JF doing the paying.
I am not a short. I am a long who lost money. Things could be different by year-end but I would not come back here to buy until after the restructuring. Oil company capex will still be reduced for a long time.
He did sell 1/3 of his investment in Marine Harvest for $510 million dollars. So he can use those funds to buy SDRL bonds. No I don't think JF is desperate. The restructuring is coming and dilution of some sort is a certainty.
That's another half a billion dollars JF will use to buy SDRL bonds at fifty cents on the dollar. It will be interesting to see how the restructure plays out. One thing is certain longs will pay.
This mess will be fixed with a huge restructuring. They will trade debt for equity. They will not be going bankrupt. These holders of debt have no choice here but to wait things out. JF meanwhile buys debt for 50 cents on the dollar. You know he will come out of this just fine.
The game is definitely not over for JF and he will end much better off than all the longs here after he does his restructuring.