Looking at slide 14 on the 3Q earnings report it looks like a lot of the builds don't yet have committed financing so they need $336M between now and 1Q'15 to pay for the container ships. Looking at slide 13 they are looking to pay down $317 in debt. Finally on slide 2 you see $1.30/sh of cash flow equivalent EBITDA vs. an annual dividend of $1.56. And that 51% of charter revenue comes from offshore.
Given all this I have to think there will be additional offerings of equity during 2014 and therefore would stick to SDRL & SSW at a 70%/30% proportion. They are both growing cash flows and their dividends are growing as well and have room to keep growing. Also check out TAL on a pullback.
IMO this is the second best use of cash in our current situation. The first is buying more buildings to lease out at attractive cap rates, if that can't happen then retiring shares that are undervalued serves the share holders by placing a floor under the stock and decreasing the payout of dividends going forward so they can reinvest or raise dividends going forward.
The whole point of the business is to use debt to pay ourselves as much as we can. Be conservative with your primary residence but aggressive with a stock that grants you limited liability.