I was referring to the yield on ARCP in response to how great they are. I have owned WPC forever. Last year decided to pick up some ARCP and like everyone else got smoked. A reit that does not pay after a "small accounting error" now that is my kind of investment. Especially since everyone on the top floor who attended the last Christmas party is not there anymore. Strong and stable.
As an aside Nick should make a deal on the property next to Bernie.
I am not bitter
I am long at 33 and own jan16 18 calls and jan17 20 calls. So I am not a short. I bet we do not see a divy for years. There needs to be a shakeout in this space, way to many rigs out there. The old platforms need to be scrapped, bunches of them. Even if oil goes back to 90 tomorrow that reality does not change
I for one am not real concerned about the debt because SDRL is a bit of a national treasure for Norway and I think the banks and/or the Gov will provide liquidity. That is as long as they are not dolling out cash to the shareholders but instead are improving their balance sheet.
Book value is about 20 bucks per share and I think they will get there once things are stabilized. Beyond that who knows. I am holding because I believe in this space and I think SDRL are best in class. But this is the proverbial long term hold ( 5-10 years)
Just my two cents
all dates for the year are on their website. Looks like div will be around 25 cents. That is based on the holdings and share amount of the companies they hold. I just did a quick spreadsheet.
Sure that sounds reasonable, but why not give us an update. This is like the guy you see all the time till you make him a loan. Then when he misses the due date he will not answer his phone and he is no where to be found.
I am not one to comment much, however at this point in time this is a suicide short. It might not be apparent but tanker companies do better the lower oil is. Look at the rates. I am long Jan16 2calls and short Jan16 5calls. Net debit one dollar. If we get a pull back here I will bail on the fives.
Further this whole business with Cole I do not understand what is so hard. If it is not generating cash and it has been damaged beyond repair, then shut it down and move on.
If on the other hand it ia a viable business then sell it and move on.
I still would like to see something on the dividend side now. I do not like the message of we will be in line with comps someday, but in the meantime... nothing.
Give me something you know is sustainable. People buy reits for income not to starve to death while you play business "fixing the balance sheet". Both should be done at once.
Sarcasm from original post aside, those needing income (me included) might consider selling forward calls. It is not exactly a home run strategy but it puts some pork-n-beans on the table.
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.