The debt ratio is total liabilities divided by total assets. or 1.424/2.191 or 64%. This is no surprise. We know that Hero is leveraged. SDRL has a 69% debt ratio and is in even worse shape than Hero. So tell us something about Hero that we don't know.
No surprise there. SDRL's financials are worse than Hero's. No consolation here. The Oil sector is in for a beating. There will be great opportunities. The question is when and how low will oil go. I would imagine that Oil has extremely strong support at $40 a barrel but that is a long way down. I certainly don't know where oil will bottom but it will. Be ready if you have any cash left.
The shorts are going to have a real problem in covering without sending the share price higher. With this type of volume the days to cover is increasing. HOLY COW !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Maybe even positive. Heck we have not even hit 2 million shares today
Hero holding strong. Could be a good sign. If Hero has turned the corner on this slump it is very good sign.
Would love to see Hero buy back 20 million shares at these levels. It would only cost about $30 million which would leave their balance sheet in tremendous shape. It would propel the stock price much higher. Would it be prudent, however?
If anything the report came in a bit better than expected. No real surprises. Day rates are holding up better than expected. Where will the stock price go?? I don't know but I do know that Hero is trading near cash levels and a buyout would reward the buyer big time.
Not only can an acquirer get Hero well under Book but it can pick up a company that has a gross profit margin of over 46%. With synergy savings and adding the debt expense the gross margin would only fall to 37%. That would translate into over $300MM in income before depreciation and taxes. Hero could be bought out. Will it??? That my friends is a different question.
Pretty $weet !!!!!!!!!!!!
Any buyout would produce a company that also would not be losing money. There is good value here in the right transaction.
That might actually be good news. Your numbers show that there isn't much more selling available. Let's face it Hero is down big and is trading near cash. Can it go lower? Yes but not much. Can it go higher? Yes and it could double, triple quadruple, quintuple or even hex tuple. Which side would you want to be on???
Not if a buyer came in. If a buyer came in the shorts would likely push the share price above the offer. That would serve "Justice".