With the sale of assets the company reported that
it paid down total debt and lines of credit to $350 million.
That is still a lot of debt for a company that has a market
value of $150 million.
What is going to happen with tax loss selling in December?
I would not be surprised if this goes lower still. It might be
an excellent buy come December.
Pie in the sky.
Look at the balance sheet, current liabilities exhaust all the cash.
When there is no cash left at the end of the year they will have
to issue more shares. Right after tax loss selling, so I suspect
the shares will be lower in 90 days than today.
management is questionable as share price is at low of the last four years and
if management has cost overruns on the high rise towers or high vacancy on the
towers the risk of a dividend cut is substantial.
You have to ask yourself when most markets around the world are at highs for the last 5-6 years why this equity is at low in its history. That says a great deal about investor confidence and risk.
The cheap acquisition price of these two rigs has been wiped out by the current selling price of the shares. People that have paid $20-25 dollars a share were basically paying triple the price of the rigs. So it is not a good deal for shareholders in that price range.
They have a $500 million backlog but much of that goes to operating the rigs.
The company equity is valued at $500+ million.
The risk to this equity is that the two high rise towers
have a total cost and capex to open them as two dorms
of about $200 million dollars of which Campus is on the
hook for 1/3 of the cost. The verdict is still out on this
venture and that is a substantial risk. Secondly, management
screwed up on the Copper Beach investment, an investment
which they do not control and which they walked away from
buying the other 52% which tells you that there are issues
with Copper Beach, both the portfolio and they do not operate
Ensco, Noble, Rig are all selling for less than 1X book value of the assets
on their balance sheets. This company is selling close to 3X book value of
Second, the contracts are short term now, about a year left and when they
are close to expiring in a year a lot of shares are going to try to exit all in
the same 90 day period and AWLCF will probably see constant pressure
from here on out on the price including the tax loss period during the last
30 days of the 4th quarter as many that are upside down will sell to take
Thirdly, what happens if one of the rigs takes some time to re-lease the
rig and they have a quarter with no income, just debt payments. The
negative news usually drives down shares.
Three reasons this is dangerous, especially during periods of war
and economic difficulties.
Sanctions are U.S. and Europe and so
SDRL is not going to do business with
Russian Energy giants.
These sanctions will hurt international
energy related companies.
Shares have gone down to low of the last 5 years and most investors
including myself have lost big time over the last 5 years. Management
that watches stock decline for 5 straight years should have been fired,
but obviously, the Board of Directors is controlled by management so no
one is going to make any serious money in this investment. I am getting
ready to dump at the bottom and move on to something that might double
Economic war with Russia by U.S. and Europe. It is going to hurt all economies that
provided services and capital.
I imagine Putin will even look negatively on Russian businessmen that purchase high
end German cars during this economic war.
Also, U.S. is go to expand war in the Middle East. War does not help the economy it
Just lots of bad news nothing to do with RIG business, but remember lots of drilling
platforms being delivered during the next 12-24 months when world economy may not
be growing much and Europe might be contracting.
The price had run up and it was selling close to 3x book value. Even though the platform rigs were purchased at a good price, investors were paying triple the cost of those rigs to the company. Not a great deal.
Also, the contracts are going to expire on the two rigs in another year. What happens if the new contracts have down time and no dividend? Also, what happens when all investors try to unload during the same quarter when these rigs are close to expiration. A small investor group on this exchange can get killed when too many of them see the risk all at the same time.
That is why most investors in this equity might not make any money even with a high dividend over 2014 or 2015. Investing in this security is more like gambling than investing unless you purchase at a price that is at the bottom or very close to the IPO.
Etrade told me that the withholding rate of 30% and the additional ADR fee was done at the source in Russia. They also said the dividends were non-qualified, so taxed at ordinary income tax rate, not preferential 15% tax rate.
Lousy dividend after taxes take 1/3rd.
Until stock brokerages around the world recommend the shares, the share price will probably remain week since small number of international investors will not drive shares higher.
Beside the weakness in the NOK, the price of the shares is almost three times
the book value of the company. Why pay 3 times the cost of the balance sheet?
Three times the cost of the drilling platforms makes them pretty pricey and the
contract price for the rigs has a short contract time. What happens to contract
prices for everyone in another year? By guess is lower prices and what happens
when the current contracts expires? Most investors will try to get out in 12 months
and there could be a large number of investors trying to sell driving the price
Not a great run company. They purchased 48% of Copper Beach with an option to purchase all of it and then did not purchase the balance of the company. So they have a minority position with no control on an investment that they decided was not performing sufficiently to justify buying all it.
Also, they are building out two speculative high rise towers for high end student dorms.
The verdict on that risky transaction is not in and if it does not perform it will result in a further share price decline which will wipe out any dividend you earn for the next year.
The investing public is saying Campus Crest is too risky and management has not demonstrated that they can enhance shareholder value, that is what the share price is showing.
All the insiders and early investors got in around $14 U.S.
Between the dividend and appreciation they made a killing during the
last year, 50% return.
Time to take profits and get back in at $15 or 16.
I still believe SDRL is a better buy for long term appreciation.
I looked at this as a possible investment.
When the share price has been in a free
fall even though cheerleaders have pointed
out that revenues have gone up for each
of the last three years, I ask why is the
share price dropping and dropping. In
deciding to make an investment or not to
make an investment you have to take a
thorough look. The projects are all monster
projects that will take 5 years before they
start to produce once you build out the
infrastructure which will take billions for any
project they do.
Drilling 6 wells in Australia on land holdings
greater than Chesapeake Energy is a joke.
Chesapeake energy operates in the U.S.
which has the infrastructure in place and
CHK drills over a 1,000 wells per year.
The 6 wells being drilled here is a drop in
Why is no major investor jumping on the
bandwagon here. A year ago Carl Icahn
bought a billion dollars of CHK when it was
Has any investor in this company not lost
money on this? I will come back each month
to look at what is going on but the share price
weakness of 2014 says far more than all the
posters on this thread. I bet my investment in
CHK at $21 is going to make me more money
over the next 12-24 months than what the
investors in this message board make on
this investment. There will be plenty of time
to move into this equity if investor sentiment
ever changes on this.
I am not a short. I was looking for an investment,
and a 50% share price decline said plenty.
AWLCP is 3.5x book value.
SDRL is 1.75X book value
arguably you are paying 175% of the balance sheet (cost of rigs) to buy the rigs and contracts of SDRL while
paying 100% more or 350% for the AWLCP (balance sheet), its rigs and contracts. Seems to me that investors are chasing the higher yield of AWLCP without looking at the best buy (better rigs,
better contracts, better purchase price of the assets of SDRL.
At some point in time AWLCP should see its share price drop from 3.5 times book value down to SDRL's book value of 1.75 or alternatively, SDRL's book value should increase to AWLCP's multiple.
It makes no sense to me that their debt has been increasing to pay the dividend.
Why borrow money to pay out a dividend? If the cash flow is not sufficient they
should have cut the dividend. In addition they are selling land and production
in order to obtain $5 million to cover the cash flow shortfall to pay the dividend.
I am not impressed and after looking at the company would not make an investment
in ZARFF until the share price drops further.
A better by is SURGE. I am up 60% over the last year and in addition the dividend
is fully covered by cash flow without borrowing or selling assets to pay the dividend.
Etrade told me the withholding rate was 30% plus a 5% fee from Gazprombank, a subsidiary of Gazprom for acting as paying agent. Between the Russian government and the company fee of 5% these Russians are a bunch of thieves. I sold all my shares.
Not only is this company a tool of Putin who asked them to pay for the Olympic games and other state projects but they are basically stealing from foreign shareholders. I dumped 15k shares this week at
a small profit. Too many good domestic (U.S.) and multinationals to invest in where you not only collect a dividend but also benefit from share appreciation. Take a look at Devon, Anadarko, Noble Energy, EOG over the last two years. Almost 50-100% appreciation in all of them. No appreciation in the Russian energy companies.
My Etrade brokerage charged a withholding rate of 30% and an additional fee of 5% for the agent bank, Gazprombank. Total was 35%. Any other investors paying that collection/payment fee from the bank? I could not believe the collection/payment fee from their 100% owned subsidiary bank.
Any other investors paying that bank fee of 5%????
say a great run company, how come the investing public has the shares at the low of the last 4 years. A dividend is nice but there has been no share price growth. Total return after the 15% withholding tax is not that great compared to many other dividend payers that also have share price appreciation.