starts tomorrow. Hope he does not forget his lunch and milk money. He could make a bang by announcing div reinstatement asap. Not full boat, but a token. Say 2 cents a month until he has had a chance to review and do over what the bod has done for the last six months. Then maybe, just maybe he could tell us what the cost of all this is to date. Further he could tell us where the vise is relative to nick's nuts and where the bod's nose is relative to nick's sphincter.
Sure hope someone makes sure he gets on the right bus at the end of his first day.
I for one am getting ticked about the dividend issue. They should give us better guidance. A range of payouts would be nice. Further, a little more color on when the div will be reinstated wold be nice. Sometime in the future is not real guidance.
Yeah I agree, Herb might miss a few boats but he does not get on one that sinks. Natty Tanker is not a stock to trade. It is a long term investment with the general thesis oil will move by water. Herb will be the low cost low debt player.
Why we all gettin' personal here? Herb gonna take care of us he told us so. I took acct 101 at the junior college at night. Know my debits and credits pretty good... what was that acronym A.L.O.R.E.??? Anyhow my JC teacher told me cash generated is the sole purpose of business. Net income is just an accounting number. Can't spend NI at the grocery store, he always said, just cash. Bless his heart.
Jokes aside, the $1.80 will probably get a significant haircut. But NAO does have a clean balance sheet and should not be discounted by the market for liquidity risk. If Herb cuts the div in half we get an 11.25% yield on a business with new ships a simple operational plan and no balance sheet risk. I am good with that.
I do not think they will cut the divi this quarter. Was not but a few weeks ago our boy told us all we did not get it. He said they did not make oil, they were like the car repair business; things would be ok no matter what. Also said couple of boats paid all the bills and we were debt free.
Don't sound to me like some one who is gonna come back in a few months and tell us he F'ed up and didn't have a clue as to what he was talkin' bout. Hell, he might raise the divi, just to reassure us he wasn't lyin when he said he was the most transparent CEO in the galaxy.
I own a 2-5 call spread for Jan 16. net debit $1.00. So I guess I saying it is a buy below 3 and a sell above 5.
Yeah, I fear we are all in for a big disappointment. I sold April 12 calls and bought March puts at 9. If there was good news coming naked call buying would be happening. Not an insider leak, just lucky folks on a hunch (cough).
The worry is all the rigs on order and the debt to finance them. Further SDRL has future plans with the Russians and Vlad won't play nice with his neighbors. To me the real issue in this space is all the old rigs out there. Will RIG and Diamond scrap their junkers or keep them in service. Who knows. I do know SDRL is selling for half book value with good earnings visibility. I own it in the low thirties and I have no intention of selling.
I agree in total, however my concern is the abject silence. For the seemingly "insignificant" accounting issue they could have reserved the whole amount and moved on. I understand whoever our new hero is going to be, he/she will want to kitchen sink the balance sheet as a condition of employ, but damn, why not some kind of update?
I am getting a touch annoyed myself. How long does it really take to restate earnings? It has been months.
I went the other way and have been selling calls against my position. Not getting 8 cents a month but at least it is something. If I get washed out at the 10 strike I break even on half and the other half is healthy until the 12 strike and then I am done, in the green and gone!
This is sorta like that point in a football game when your bet is going south and you are hoping for a turnover to salvage the spread.