I have been in this stock for years. It continues to see-saw while other companies blaze forward. When I first bought it and posted how I was going to triple my money, I got a lot of laughs and razzing from the "old-timers". Boy were they right. Basic thing is, it hasn't done squat and success is always "just around the corner". If you follow the NFL, this is the Detroit Lions. Seemingly loads of talent, but doesn't make the cut, and by the way, wait till next year when it is really going to do well.
The management of the company has not created a complete scenerio of success; everything is close, but no cigar. They make drillships that go into deep water when deep water is the place to be, but then they are hit with downtime issues. They make grand plans with a company to drill in the arctic, then another disaster hits and a drillship is left without a contract. Earnings are good, but not good enough. Future earnings are going to be amazing, but then they aren't.
The reason is whatever you want the reason to be, management, market downturn, analysts just don't like NE, or maybe you are a jinx and every stock you buy goes down (nothing personal). Whatever you pick is probably right and probably wrong too.
NE seems to be range bound between mid-37 and 40. Below and above those levels are buy and sell respectively. Of course, deep down, you know it's going to pop. You just know it and as soon as you sell at $40, it's really going to $90, so it really sucks when it teases $40 and sure enough, back down it goes and you knew you should have sold it then because you knew it was going to fall back.
Best of luck.
This stock is up on momentum. No way it justifies this value. Enjoy the ride, but somebody is going to be a bagholder when it tanks.
I think it is "don't be left out" and then a week later it's "Not again!". It's been in this trading range for so long and we all know it's going to break out at some point. So it starts going up like it usually does, and people say "I better get back in before I miss the big rally". They jump in and it accelerates. Then the funds start selling and down it goes back into the 37's. "One day" is coming when it is really going to break out. That's what management keeps saying. I keep waiting. I will be happy to see 40, but will hardly be surprised to see $37.40 in a few days.
Not a big fan of Al Gore.
I love reading all the explanations here of how the market was down, so NE was down. Or oil was down, so NE was down. Well, today, the market is up because GOOG is up. There are companies that move the market and companies that make things happen. NE rarely makes things happen. The market moves NE. Their program to address downtime was so slow in the making. Years went by with nothing but excuse after excuse. "We're pretty good, but wait till next quarter or next year" seems to be the company slogan.
I agree with the decision to make the new drillships. That seemed like a solid move when they started it. However, this breakup plan seems like a way to make a lot of money for an investment bank and for the directors of the company. The old rigs don't make as much money. Who cares? They still make money. In this environment, even the rigs that were retired could probably find new life. NE wants to sell them, fine. But make a good decision with the proceeds. If NE gives it to Goldman Sachs, it does nothing for the stockholders. Don't kid yourself.
When I first bought NE, it was $48 a share and "surely headed for a triple". Many of the old-timers on this board laughed at my exuberance. Good luck to all you newbies. Hope your ride is smoother.
Good thing the report was good. Imagine how far it would have fallen if it was a bad report. Another management failure.