Sometimes one has to regroup in order to survive. Of course they knew the stock would take another big hit but they will hopefully be in business when the price of oil comes back. They can not stop the price of crude from going down. What they could do was discontinue the dividend and remain viable. Do not let the things you can't control interfere with the things you can. I do not like that they needed to discontinue the divi yet it does appear to be the responsible thing to do.
There has been no change in these drillers. Similar to coal companies that just keep making lower highs and lower lows. SDRL continues to make new 52 week lows. Refreshers on the offer as they continue to take them lower. Never mind making 2% a year in GIC's. Make 5% or more a day shorting some of these stocks that the big boys are taking to the cleaners.
Some big money has made a bundle shorting these shares. So very easy for those with the big money provided by the FED to control sectors and make 100's and 100's of millions of dollars.
Think of the folks that purchased at 40 for the dividend. That is very sad. One has to feel for them.
When the big money has made a decision regarding direction you better not be on the wrong side. Fundamentals will not matter.
Decided to cover the rest of my short here at 28.25. May be a long on Monday or may be a short. We will see but I do think there will be a trade here Monday. Have a great week-end everyone.
Full disclosure. I was short because of the whole sector getting hit, shale being where funds going, oversupply of rigs, Russia situation, etc. I did cover on Friday for 3 reasons. A) Big drop because board member not seeking re-election creating over reaction, B) stock down nearly every day since Sept. 3 rd, do think SDRL is the best of the lot in drillers which is not that significant when big money shorting and C) appeared to be a lot of short covering Friday afternoon. Purchased some shares at the end of the day. At this stage only looking for a trade as I am not willing to make an investment with market so high and the world falling apart.
At present only OCN knows the truth and it is difficult to trust them.
Market making new highs while many stocks at or near 52 week lows. DDD seems a little overdone yet it will be determined by the direction that the big money takes on it. They are making a lot of money long on some stocks and short on others.
Purchased at 53.39. Will see what happens.
Significant losses despite the great dividend that was provided. Reality is that the whole world is in a mess.
Folks cheer up because things are only going to get worse. The monopoly money gains in this market will come to an end.
These stocks are very much like a lot of sticks in 2008. The big money was shorting them like crazy. The brokerages had clients wanting out like we have now. The brokers shorted the same shares then covered with the shares that clients selling. The result was similar to what you are seeing today. Shares fall hard.
There are very few real buyers. The buyers are brokers making big money covering. As I was typing another nice 45 cent drop.
Covered half at 28. SDRL has went nearly straight down from September 3rd so there may be a bounce. If it goes above 28.50 I will cover the rest and look to short again.