Fidelity is coming back in after last jumping in in a big way during the crash 6 years ago and selling out largely on the rise back up. Interesting.
The filings are coming in and there were some big additions by a half dozen or so institutions.
So far, only a couple positions were cut in a meaningful way.
It will be interesting to see whether Columbia Wanger finally sold out of its entire position.
These companies that tout bringing in more revenues while the bottom line sinks deeper into the red are eerily reminiscent of every single fad stock that doesn't exist anymore/trades for pennies.
Who cares if a company has $300 trillion in revenue if it spends more than $300 trillion to get it.
Should be taken by analysts as a positive for the industry since it partially addresses the supply/demand imbalance.
The ENSCO 5000 (2300 ft water depth built 1973), ENSCO 5001 (6500 ft water depth built 1975), ENSCO 5002 (3000 ft water depth built 1975), ENSCO 6000 (4000 ft water depth built 1986), and ENSCO 7500 (8000 ft water depth built 2000) were all transferred to discontinued operations and "held for sale" -- which means they're not competitively being marketed now. The 5000 was previously warm/ready stacked in S. Africa, the 5001 was on contract through 1/15 in S. Africa, the 5002 was warm/ready stacked in Singapore, the 6000 was warm/ready stacked in Spain, and the 7500 was on its way to the same place as the 6000.
That's 5 less rigs out there bidding on work.
Now if only DO and RIG would come to their senses as well. DO might as well bring the Saratoga, Vanguard , Valiant, and Princess out of the active fleet. The Vanguard's contract was cancelled 8 months early because it's not up to the new codes and has to rely on an exemption-- that should be a sign that it's not wanted any more. DO had to drop the rate on the Princess to $230k/day from $345k/day just to get a two month gig or, as its CEO said, "an aggressive rate in order to keep the rig working."
That's just delaying the inevitable, rather than ripping the bandaid off at once like ESV. If DO and RIG each cut 5 old rigs out of the active fleet, the supply/demand "imbalance" for other than shallow water jackups largely disappears. DO would apparently rather bring the rates down across its entire fleet, though, than take a $1B+ charge like ESV just did.
HERO might need to go bk in the face of all the new jackups hitting the water next year. Its woes are basically going to be mirrored by Paragon (NE's "pureplay" standard spec. spinoff) within 5 years in my view.
The estimates for $282M in revenue seems a tad higher than what I peg at around $278M.
The bottom line is $.08/share higher than my own estimate for $1/share.
I guess we'll see.
Destination: Luba, Equitorial Guinea.
I don't know how long that trip will take, or whether the Hunter gets mobilization revenue while in transit, but it looks to be gearing up for the next contract.
The Mako is drilling for Salamander in the Greater Bualuang area off of Thailand. Salamander is expecting approval for permits for additional drilling this year. Today, they released a little more information (at least new to me) regarding the scope of the additional work, approval for which they are seeking:
"Environmental permits are currently being sought to cover 20 drilling locations in the G4/50 acreage."
That's another year's worth of drilling they are expecting and they're apparently pleased with the Mako.
If (when) Thailand approves the permits, Salamander could very well extend the Mako another year out from November 2014.
Given ATW's m.o., I would not be surprised for that to be released contemporaneous with earnings.
I believe Z is overrated and overvalued, but if a competitor fumbles and you can take advantage of it on good terms, why not do it?
Because a. it most likely overpaid; and b. even overpaying it probably only paid a few million dollars so the acquisition does absolutely zero to move the needle. Retsly was started one year ago by some twenty-somethings with a computer (one describes himself as a "self taught software enthusiast" and the other has multiple "start ups" in the last couple of years). No one has heard of it and it has no revenue. They likely made out wonderfully (good for them) assuming they weren't paid in Z stock with a lockup period.
Congratulations on your 170 Oct. $15 puts. The increase in value for that number of puts does not a ferrari make though.
Not really reacting in AH so far. Those who are short just received the best news possible. The bottom could be in if guiding down for the year doesn't cause a drop. We'll see tomorrow.
Not for nothing but for supposedly having $1/2 B (or $120M or whatever) you waste a lot of time on small potato options positions/shorts.
Or you could just read the text of the 10Q:
"As of March 30, 2014, the Company had 305 company-operated shops. During the 13 weeks ended March 30, 2014, the Company opened nine new company-operated shops and closed no shops."