Indeed, DO vs. RIG is what I am looking at. Which one, and when to dip my toe bakc in the long waters? On paper, DO is much better leverage wise- no debt coming due until 2019, while RIG has a couple large debt issues soming up in next few years- if market is sunk for 2 years, where'how do they refinance or pay it off? However, I woddl agree RIG managements seems more agressive and in tune with the current market than DO- why is DO cold stacking NINE 40 yr old jack ups and not scrapping a few, taking the hit now?
Although your incessant bashing gets tiresome, you make a good point here. I count 9 stacked rigs in latest rig status report - all but one built between 1973-1982. What is the point of cold stacking them all? Add up the deactivating, preservation, daily costs, possible repair and likely high reactivation rates in the future- why not take a hit on a least a couple of those now and scrap them?
Don't be so hasty to donwgrade this post - it is true. At some point they will take a huge aset writedown as accounting book value far exceeds true market value. Good in that it is a non-cash event that helps reduce taxes- bad in that book value will tank, who knows how much?
I never worried about the survivability of AMD as long as the bonds were priced as if B or higher
quality. Now that the rout is on to total junk status, you had better question the viability of the company
if playing wikth the common stock in any long fashion. The bean counters and bond traders hade a lot
more skin in the game, and better due diligence.