If you own SDRL for the price action, then you own the stock for the wrong reason. I own it for the dividend. If cash flow is the goal, then price action doesn't matter. I get my 9.50% rent and a bonus if I decide to sell call options to boot. That was a great play at $45.
Is there any possibility that they are going to suspend or cut the dividend? I have had two companies I own either cut the dividend or suspend it within the last month. If there is nothing in the works affecting the dividend, then owning SDRL is a no brainer. I purchased more yesterday. Now I don't know where the bottom is. $38?
It's $8.00. So why would the stock drop below $8.00 if the PO is being offered at $8? Who would buy the PO for $8.00 when they could buy the secondary issue for less than $8.00. I would say we have seen the bottom.