Thank you NMB, for both your analysis and information, which have been a great help to all the long-time readers of this message board. I have been holding 200 ACAS Jan'15 calls since last June at @1.22, but must confess to frequent moments of doubt. I think it is clear in which direction ACAS is going--thanks in large part to your analyses and information--but the process seems to be unnecessarily dragged out; hence the moments of doubt.
I should also thank you for your early comments on MTGE. I didn't buy early myself, but when the price came down I began accumulating at an average price of 19.26.
Thank you pt for your reports on the views of various brokers; it is a great help to those of us who do not have access to these reports.
I do have access to Morgan Stanley, however. To add to your comments on Morgan Stanley analyst Ole Slorer's view, his comments yesterday included the following: "Investors were spooked as NE kicked off earnings season for the offshore drillers with a soft market outlook. Despite near-term choppiness on demand slippage and increased rig availability, we believe that floater utilization should eventually pick up into 2015. We note healthy UDW fixtures in the works that have yet to be announced due to regulatory delays...In the meantime, we believe that dayrates for 6g+ and harsh environment rigs should hold better vs. 5g units. Our top pick within the subgroup remains SDRL/SDLP, where we see continued dividend growth independent of near-term day rate trajectory."
Slorer's SDRL EPS estimates for 2013, 2014 and 2015 are $2.64 (vs. $2.66 consensus), $3.78 (vs. $3.62 consensus) and $4.28 (vs. $4.35 consensus). He sees SDRL's return on equity rising from 24.7% in 2013 to 30.4% in 2015.
I added to my Jan 2016 calls on Friday at $2.10. It seems I overpaid a bit but I still expect a substantial return.