2015 is not a big issue as 90%+ of SDRL rigs are booked for this year. Next year will be more critical as I believe only 63% of their rigs are booked up. Plus there will be new rig deliveries as well.
There are many good stocks getting hammered this week. PSEC is not alone. In general I think investors are scared of a major pull back. People are selling to be more in cash IMO. If you can live with the 12% dividend I think our share price will recover in due time.
Actually I found the press release TODAY that was from another company but in reality THE STREET did the downgrade Dec 19th. Must be a short selling company just re-posting old news.
It is not about the U.S. government helping the oil companies……… it is about protecting the USA. If we let OPEC destroy our oil industry ( by keeping the oil prices low in order to put the USA producers out of business ) in the future we will be at the mercy of countries that want to destroy us. It is in America's best interest to keep our oil industry intact and producing.
With all the ups and downs in the market it is nice to get a dividend every month. Plus it seems like there is maybe a 10-15% upside for the stock in 2015.
From what I read any dividend cut has to be voted on by the shareholders first per Swiss law. So any cut won't happen at least another quarter or two IMO.
You already said that you give up, nobody listens to your "logic" …….. so go away. Anyone who calls an excellent company a POS in a period that the entire oil service industry is getting hammered shows the kind of loser they are. BYE BYE
enoch150 ……. Try to calm your anarchist & fascist thoughts for a moment if you will. Consider that oil is money & power, wars are fought over oil quite often. Probably second only to religion ) Should the USA sit and watch OPEC help drive oil down to a price that runs America's new energy source ( oil sands etc ) out of business ? They do that and in a few years America is back to being energy dependent on countries that don't like America and hold us hostage when they see fit. Then watch as they drive the price of oil back up again.
If the U.S. government sees fit to bail out auto maker such as GM in order to support employment why not do the same with the oil sand projects? Not only would it protect jobs but also insure that the U.S. will not need to bow down to Mecca in order to have enough oil in the future. Would it not be better to support our own oil industry that to have to get involved with wars in the future to gain access to energy sources?
If the U.S. had to take an equity stake in the projects so be it. They did with GM and make some serious profits when they sold. If the government lets OPEC destroy the American oil industry that is very short thinking on their part.
That is one major point……….. RIG has not cut their dividend. But the reality is THEY WILL NEED TO CUT THEIR DIVIDEND. Any good management team not knowing how long oil prices will be down or how low it will go will cut back the dividend. And as I understand due to SWISS LAW the shareholders must vote for the cut. So that would be probably 2 quarters out. Share price will take a hit when they do reduce or eliminate the dividend.
I personally prefer SDRL over RIG in that they have already cut their dividend, they have the most modern fleet and their rigs are 91% contracted out for all of 2015.
If our government was smart ( I know that is hoping too much ) they would nationalize the Shale companies or buy all their oil production at a fixed price per barrel so that the USA would not buy so much imported oil. This takes the power away from the middle east and fringe countries. We lose huge money on the post office every year and get nothing for it, why not lose money every year and have a huge energy reserve?
If you read the last Q discussion you can see how much of the debt is due in which years. Considering the saving of 2 Billion in dividends and other sources it seems to me they have planned well.
Very wrong my friend. SDRL has plenty of money, cut the dividend and is 91% booked for all of 2015 thus making plenty of cash this year. A couple years out if oil goes to $10 and stays there then you might be right.
He will tell you AFTER he buys all he wants.