Best advice I can give you is to review the latest earnings reports and presentations for SDRL, SDLP, NADL, and SFL. They are part of a network of companies controlled by John Fredriksen, the Norwegian billionaire. He runs a higher leveraged, big dividend model which doesn't fit the conventional wisdom of Wall Street. The IPO was the first listing of the stock on the NYSE. Previously, shares were on the pink sheets only to US investors.
SDRL is the best in class offshore driller and NADL is a subsidiary focused on the North Atlantic and Artic regions. It is an income stock with some growth prospects as two new rigs go into service. Cost are higher in these environments but the oil majors have to go where the oil is and Seadrill and North Atlantic are one of the select few who can handle those conditions and in deep water/deep drilling situations. I don't know where you heard that $160 number but I would take that with a block of salt. Crude peaked close to that level in 2007(?) and the oil producers were raking in the cash. If it ever drifted down to the $90 per barrel range, there would be a real downturn in oil stocks... and a time to back up the truck, as it were.
Hope you post here frequently. You are a real student of the game.
I asked for your opinion on NNA on the SFL Bd. I wanted to get back in at the time of the SPO but reconsidered.
My shipping stocks are GLNG, GMLP, CPLP and NMM, but willing and waiting to get back into SFL, TGP and GLOG. See any other good possibilities out there?
I read that MAIN article when it first came out, as I bought MAIN twice during the first week of January and have been following it ever since. The clincher for me is that MAIN is in a class by itself when it comes to the required rate of return on invested capital, which wasn't even mentioned in that article. I will add shares if the price would just dip a little bit more. My cost basis is 33.04 and could have beat that a bit ago but didn't have the cash on hand.
I bought HTGC on Friday. Taking a serious dip because they will receive some loan payoffs in the next two quarters which will lower their net asset value for those two reporting periods. HTGC is known for its leading position in credit quality and excellent management. They are also a dividend increaser although I don't expect that for the next couple of quarters.
BTW, I'm quite sure I mentioned to billion that your post made me think of taking another look at MAIN.
Go to the NADL website,... Financial Reports... Q4 and 2013 Report... there you will find two pages under the heading "Corporate Strategy, Dividend and Outlook." That should answer most of your questions about how they will pay the dividend.
No dissing NATDF... that's my baby, and I'm stuck with it unless Wells can come up with something. They blame the lack of notice of the offering terms, timing, etc. on the company. Works for me. Wells says they have a number of NATDF shareholders in the same boat so they are going to take it to the company. We shall see if that does anything. They will be getting a few calls from me until something gets resolved. I'm mad as hell and I'm not going to take this anymore!
I exited banks, selling my long-held position in WFC and a new but profitable one in BAC. However, I agree with gambler... this is a good time to be IN the banks due to the interest rate trend plus the annual stress test/dividend sideshow. Today I have 22 stocks in baskets. weighted average yield 7.28%. Still spread too thin. Long list currently (sorry), with percent allocation.......
SDRL - 9.1
TOO - 5.8
NATDF - 5.0
SDLP - 4.7
KMR - 8.1
GLNG - 7.9
WMB - 7.9
CPLP - 6.1
GMLP - 5.2
CVI - 3.6
KMI - 3.6
OKE - 3.2
CLMT - 4.0 (management a concern)
PDH - 2.6
TRGP - 1.8
.....BDCs (needs work)
HTGC - 4.2
PSEC - 3.1
ARCC - 2.5
MAIN - 1.2
TCAP - 1.0
NMM - 3.2
Ditto bayman's comment (although I am a relative newcomer). You received some undeserved criticism. I believe "Ignore" is the most eloquent response although I don't always practice what I preach.
Your information and feedback are important so I hope you don't abandon the SFL board.
Funny. A good week mostly for me and I end up in the same boat. Up a quarter percent ytd. Never have I left so much money on the table because of some moves I was determined to make. House cleaning is pretty much done. Time to let the dust settle.
Did you see the MF piece comparing the dividend potential of SDRL and SDLP? I think you have to own both. Same with Golar (GLNG) and Golar Partners (GMLP).
You are right about the price performance over the last two years. Three years ago it was priced at $17.50. The new export terminals have been harder to keep on schedule, but the engines are idling on all the LNG carriers.
They will be going up as LNG export capacity ramps up around the world. 18 million tonnes per year of new export comes on line during the balance of 2014 followed by 19 million tonnes in 2015 and 31 million tonnes in 2016. Chenerie is included in the 2016 figure.
But, of course, to each his own. GMLP is better for predictable income growth if interested.
I added shares of LNCO and HTGC today. LNCO for the dividend and diversification. HTGC is a screaming buy for today. Have now committed 75% of my proceeds after exiting WFC, SFL and BAC.
no offense intended, just a little gentle ribbing. I have touted GLNG every once in awhile and in the "old days" it was a source of fighting between us. I think we have moved on and now communicate in a more civil and productive manner.
As to GLNG, it has the ships of the type that will carry the LNG exported from your CQP terminal at Sabine Pass. After being in the doldrums, the stock as broken out after its 2/28 earnings report. The discussion of natural gas and the Ukraine being the catalyst. This is not unlike Fukashima being the catalyst for GLNG in 2011 when it was a triple for me.
EIA data? Who was that post addressed to? I do not use EIA data extensively, although it is the best reference on the overall energy picture I the US. I do read the monthly IEA reports. Ever heard of them?
I admit, I know very little about Wind; however, one can build LNG export capacity only so fast. Chenerie started construction at Sabine Pass in 2012, I think, and it won't go on line until 2016. They have had challenges with financing but they have kept the lights on and have Bechtel as the general contractor, I believe, and are on track. The financing challenges are of Chenerie's own making and absolutely NO taxpayer dollars should go into that, IMO. Bechtel is one of the best in contracting, as I understand it. Bottom line, you don't pull the trigger on one of these projects until firm commitments are in place to get the gas from the producers, through the processing facilities, into the pipelines, to the terminals, onto the ships and to the end-consumers. In the meantime, you work on the permits and approvals and financing. These are huge undertakings which take time, Fukashima or no Fukashima. Ukraine or no Ukraine.
I am timid on adding BDCs right now, but going ahead here and there based on Wells' opinion that the turmoil over Russell listing is a buying opportunity, and they also have an overweight rating on their BDCs generally.
That said, I am only adding very small amounts, sometimes only 100 shares at a time. PSEC could well go lower and if it does I may take another small bite. I have an order in for HTGC (what I meant before) which is down after a rather disappointing Q4 report and lowered target price range but Wells still has them in the top 25% of their BDC coverage and rates them highly (credit quality, management, etc.) so that sounds like one to accumulate even though their asset base will be shrinking for a while due to repayments on loans.
I like the jobs number and like the slow economic growth we have had (I subscribe to the hare vs. tortoise theory). The real problem IMO is the lack of growth and improvement in the fortunes of the middle class as evidenced by flat real earnings and negative trend in median household income... not good for a consumer-oriented economy.