The best news for longs is if SDRL cuts their dividends to a more sustainable amount, say 5%. This would be a huge catalyst as investors would then be rest assured that SRDL management is sane and pro-active. IMO.
The cutting of the dividend could be THE catalyst to spur positive sentiment on the stock. We all should be excited that there's no need to borrow more money just to cover the dividend. I will be happy with a 50%-75% cut now, and still get 3.5 to 7%, PLUS a nice bounce back in the stock to mid $30s.
From today's price action one thing is clear. Smallest hint of a good news and all the short roaches run for cover. This could be possibly setting up for one of the most violent and incredible short squeezes of 2014. Any squeeze and we could explode past $18 smashing all technical resistance levels. At the current price, the risk is clearly on the short side not long. IMO.
This is not a grind up situation. From the massive and speedy drop it is safe to assume there is a large recent spike in the shorted shares. These shares have to cover eventually, and many of them are only in for a flip not long-term trade. So with the horrible tape today and the relatively decent price action of GTAT, this is a signal to cover if you're short. And when the covering starts, it won't be a slow gradual climb. It will be a sharp spike - could easily be up 25% in one day followed by a couple of days of heavy volume uptick. IMO.
I like the idea but if GE moves in now, they would probably pay a premium of 50 to 75%. That's not gonna do!!! GTAT at $18 or $20 is not that exciting. GTAT could have sales of $800M next year. At a modest 10x sales, it would be worth $8B. That's 500%+ premium!!! So my 22,800 shares votes NO to acquisition.
No but the market looks forward 6 to 12 months. So Driller shares will be a lot higher than they are today before the rates start to improve. Stock Market 101.
So ESV just announced the $1.25B bond offering. I guess the underwriters knew this was coming for weeks and co-incidentally their major clients were probably piling on the short side. No wander this stock has been pummeled relentlessly in the past few weeks. Now, the cat's out of the bag so the "cover-on-the-news" crowd should cover soon and move on their next fraud. At least we should get a relief rally now. No reason for the crooks to stay short here.
P.S. Guess the SEC doesn't have the resources to do the job they get paid for - watch over investors against exactly this type of suspicious and well-coordinated theft. Wall St crooks at their finest.
The management probably kept quiet due to the bond offering. They would have faced lawsuits if they tried to prop up the stock just to announce a bond offering shortly thereafter. Now, the offering is out. Soon the negative sentiment will subside. If the worldwide economy is on the mend, as is portrayed by the rest of the stock market, the demand for oil has to come back. Cannot have one without the other.
So says Jim Cramer. Oh wait, he was pounding the table on this when stock was at $54. And recently he is not so positive. I bet he forgets how he misled investors a couple of months ago when this thing was 20% higher.
Agree completely. Cutting the dividend to a sustainable 5% would be the smartest thing by management. Instead they're borrowing and expanding fleet?? No wonder board members are quitting. Someone's ego needs to be checked here. Do the right thing and build some investor confidence in the Street for a change.
This has been the perfect storm for the drillers. Dollar strong, oil weak, day-rates dropping, inventories rising, Opec increasing production, and most importantly, news mongers continually bashing the sector. Well, the tide will rise again and the short interest will give us great fuel to snap back to $40s in no time.
Don't jump in with both feet without regard to what's going on. But taking a look at what's going on makes one believe we've washed out now. With so much negativity around this sector, the likes of which I don't recall in the past few years, I rather risk capital on the long-side, collect dividends and wait for the inevitable pop. After all, oil and drilling for it are not fads, unlike cameras on a stick or Mexican fast food chains trading at unbelievable valuations!
I just went through the fundamentals of the Company. Then I dumped all my shares and locked in my profits. It always drops faster than it goes up and the ascent has been turbo charged. And the irrational exuberance on this Board confirmed my decision to sell. Good luck to all. Be careful as nothing goes up like this forever.