Billionaire John Fredriksen boosted his stake in rig company Seadrill Ltd. after the stock dropped on a market downturn, a longtime adviser left, and amid uncertainty over a Russian deal.
Fredriksen’s Hemen Holding Ltd. yesterday bought 2 million shares in the world’s biggest offshore-rig company by market value, boosting its stake to 115.1 million shares, or 23.34 percent of the total, Seadrill said in a statement. At yesterday’s closing price in New York, the acquisition would have cost $56.8 million.
The purchase shows Fredriksen’s commitment to Seadrill, his most valuable asset, after the company fell more than 20 percent in the past three weeks. The decline is due to a worsening rig market, risk that a $4.25 billion deal with Russia’s OAO Rosneft could fall through because of international sanctions, and the departure from Seadrill’s board of Fredriksen’s top adviser for two decades, Tor Olav Troeim.
Seadrill rose as much as 2.9 percent in Oslo trading, the most since Aug. 11, and gained 0.3 percent to 178.4 kroner as of 10:09 a.m
gambler: Have owned every one of those at one time or another and currently still holding NRZ, PSEC and NCT. When a divvy is reduced my first action is to cut and run, which is what I did with WMC, NLY and ARR quite a while ago. NRZ will be fine although I can't explain why it hasn't shown more upside. Perhaps people are waiting for the split this quarter to assess. NCT also is awaiting the spin off of the senior living assets and I will evaluate then. Have been holding NCT since mid 2000's and at my basis (with all the spinoffs) I'm up substantially. Selected REITS and BDCs will be fine in a rising interest environment and I just increased my NYMT and will add again, as I will with AI. Most talking heads on the shows last night said that yesterday's employment numbers signal that the markets will be great going into the end of the year (without a black swan event). Will be interesting to watch the oil patch as prices decline. MLPs? I've got 6 and am basically married to them with significant profits and a BIG tax hit if I sell. Let my kids worry about that but the decline in oil seems to be taking them down too (along with the drillers UGH).
Credit Suisse today sounds an upbeat note about mREITs, pointing out that the sector has rebounded over the past two weeks and saying CS “continue[s] to see the mortgage REITs as presenting an attractive risk reward outlook given the 11.4% discount to book value and more benign forward rate environment.” Credit Suisse says it continues to prefer mREITs that are building out operating businesses, listing PennyMac Mortgage Investment Trust , New Residential Investment Corp. , and Two Harbors Investment Corp. as its top picks.
Mark, agree with WMC, a bit disappointing but NRZ's report was outstanding. Now I DO expect a special dividend for Dec. with their nice beat. Still don't know why the market continues to ignore NRZ's fine performance over the last few quarters.
Eliasek M Grier, who is Chief Operating Officer at Prospect Capital Corporation, bought 5,000 shares at $9.56 on Nov. 12, 2014. Following this transaction, the Chief Operating Officer owned 197,196 shares meaning that the stake was boosted by 2.6% with the 5,000-share transaction.
Barry John F, who is Chief Executive Officer at Prospect Capital Corporation, bought 110,000 shares at $9.57 on Nov. 12, 2014. Following this transaction, the Chief Executive Officer owned 4.5 million shares meaning that the stake was boosted by 2.49% with the 110,000-share transaction.
Stark Eugene S, who is Director at Prospect Capital Corporation, bought 1,512 shares at $9.40 on Nov. 12, 2014. Following this transaction, the Director owned 21,000 shares meaning that the stake was boosted by 7.76% with the 1,512-share transaction.
rb: I'm out of SDRL for a few weeks so saved a few bucks. Still with LINE at a 50% profit but have LNCO in my IRA so if I sold I wouldn't be able to take advantage of a 5 figure loss there. Right now I'll hold because I feel almost all of MLPs and oil related stocks will bounce hard if oil starts to rise again. Of course I thought the NADL deal would be done already :~(.
Very nice divvy coverage and B/V increased. Don't know what it means though as I had 7 of my stocks report today, every one showed nice earnings and numbers and all were down significantly. Can't win for losing
who held through thick and thin from GKK to GPT. Way back when, I sold my GKK and put everything into NCT which, looking back was the right thing to do with it's divvys and spin offs, et.al. Hopefully now it will be your turn to prosper. Good Luck.
Your overrated comment rings true but I would find it hard to imagine that the management buys are not in their windows of opportunity. Of course they know the information, but I'm sure it's legal for them to buy at this time. That's why their buys lend a bit more weight to their purchases at THIS time. Heck, I don't know anyone that would just throw away a million or two dollars for no reason.
Part 1: Hamilton, Bermuda, December 12, 2014
As the year draws to a close, I would like to share with you some reflections on the state of our business and in particular how Nordic American Offshore differentiates itself from the competition.
NAO is essentially based on the same business model as Nordic American Tankers Limited (NAT) in its industry, with a modern and cost effective homogenous fleet, a strong balance sheet and a quarterly dividend pay-out policy. We at NAO have a cash break-even level of about $12,000 per day per ship, which is considered low. NAT owns 19.2% of the shares in NAO which became stocklisted on NYSE June 12, 2014.
The last few months have seen significant changes in the price of oil, spurring confusion among some investors who have fled from oil-related securities. By doing so, many of them have, in my opinion, "thrown out the baby with the bath water."
Most industry observers were surprised by the rapid decline of the price of oil - but it is important for investors to understand why such a shift happened. Our view is that there is no systemic problem in the oil market. Demand remains healthy and is growing. Oversupply of oil is one important issue, but supply can be controlled. Therefore, we must consider the situation in the context of geopolitics. Who gains and who loses from a low oil price? Why would OPEC choose to maintain high production?
Sarge: If NMM could sustain it's 10% yield 10 weeks ago at about $17, why shouldn't it be able to sustain it now at $10? The higher yield is only a factor of it's lower price. Perhaps keebon has thoughts on it's earnings and divvy sustainability. It's paid almost the same divvy quarterly (.44) since 2009 without any problems, despite the fact that the BDI has been like a yo-yo for years. kee???
LINE: This COULD be a great entry point for LINE. This from I.V. this morning and very possibly the reason for it's sharp fall today. IMO this has NOTHING to do with fundamentals, just the index members selling LINE as they cannot hold it.
" Likely because they were kicked out of the Alerian Large Cap Index Fund over the weekend, (replaced by WES), because it's market cap fell below the requirements. Any fund based on the index needs to sell it by the end of the week."
One aspect on NADL not mentioned at all was that Exxon today announced the West Alpha will be working somewhere for them, at least in the short term. Looks like they're (XOM) locked into the charter.
Mark: Perhaps they were not looking at what the market thought of their purchase. Perhaps they're buying because they feel the changes in store for the company will lead to a better company(ies) and a more profitable investment. No one really knows the reason for their buys and apparently the "market" right now could care less. It remains to be seen how their new direction will pan out.
P.S. I exited the last of my PSEC on monday, pre-market a bit over $8.70 and am holding that cash on the side to re enter next month. I needed the tax loss and I want to get back in in early Jan., Hopefully before they make any new announcements. I still think it will be a very good investment with the new divvy and suspension of the ATM below NAV. We shall see.
The broad selloff in energy stocks has taken down virtually every oil-related stock. But one industry seems to have been unduly punished. Oil-tanker stocks have sunk along with oil, falling 10% as a group in the past six months.
Investors and insiders say the industry is fundamentally healthier than it has been in years. Shipping rates are on the upswing, and fuel costs—the tankers’ largest expense—continue to decline.
Rates for tankers carrying crude oil have risen 23% since mid-October, and those carrying refined products like gasoline are up 36% over that period. Supertankers known as VLCCs, for very large crude carriers, are renting for $77,000 a day for individual voyages, up from $35,000 a year ago, says Evercore ISI analyst Jonathan Chappell. And the cost of fuel for shippers is down 40% from 2013.
This sudden strength might seem counterintuitive, given the drop in the price of oil. But oil’s current weakness has more to do with oversupply of the commodity than with weak demand. With demand continuing to rise, albeit at a less rapid rate than in previous years, the need for tankers remains robust.
Demand for oil tankers has risen for several reasons. China has been stockpiling cheap oil to shore up its petroleum reserves. And the surge in oil supply out of North America has opened up new shipping routes. Venezuela, for instance, has shifted more oil exports to China because the U.S. doesn’t need as much of its oil, and longer routes are lucrative for tanker companies. New refineries in the Middle East should also open up longer shipping routes as oil products must travel farther to reach consumers.
In addition, the glut in oil has led to delays in moving refined products, which just means more work for some ships—it “uses up ship time, and we get paid for that, too, at the same rate as the voyage,” writes Anthony Gurnee, CEO of shipper Ardmore Shipping(ticker: ASC).
Stagg, I agree. Still holding my position and waiting for MY entry point after the knife lands. An analysis by a very astute poster on the IV SDRL board says SDRL will have no trouble meeting it's dividend out of current cash flow for far into the future.