SDLP will equal NAT in yield So yes Its off to 7.00
There is not even a chance of default here..People just get scared..
SDLP is one of the best opportunities in drilling. SDRL will continue to contract lucrative drilling
contracts to SDLP. With only 75 mil shares and a 49 mil float There will be a tender offer for these
insanely cheap shares . Or a direct buyback announced.
Cashflow great - Dividends will be paid SDRL needs them..
Risk reward is most favorable in SDLP.
I would expect a tender offer SDLP shares by the company.
How many of you will give up shares at 3.00
or hold them and see 25.00 in 3 yrs.
Big boys want these shares.. Its a crime that this happens. Load the boat TCK goes to 11.00 by June.
You can always buy cheap protection in June puts
Early April- With Easter early . Opec co-operation - and Crude passing 33.50 we are going higher..
Let remember - Its the tanker rates going higher Which shows demand picked up
Scramble is on to move sub 30.00 crude.. Wait til crude hits 33.50 ( That may just trigger a recovery towards 40.00 ) There will be no empty ships and rates may hit 55,000 into spring.. Refiners will fill the tanks going into spring..
330 mil less cash 30 mil
net debt 300 mill divided by 26 = 11.5 mil balance per ship
All ships are the same Each takes in on average 40,000 a day x 330 days/year or so.
If they run 352 days all the better.
Cost to operate is stated by NAT at 12,500 a day Maybe better now that fuel is lower
NET 27,500 a day x 330 days = Profit per ship of - 9.075 mil profit per year
NAT is able to load up on cash and pay dividends of 1.72 a sh and still have 80 mil a year leftover.
Say we pay the loans off in 10 years. P&I payments of 40 mil/yr .. Now we have 40 mil in the bank .
Refiners are holding back buying new crude- Hoping for lower prices which they have. Thus the big backup at storage facilities. Very temporary..
NAT is undervalued - Like the boss said 74 consecutive quarters and he is the largest shareholder.
At 11.50 a share I cant believe the 15 mil shorts- 8-9 days to cover. I would love to see us sign a few ships to long term 2 year deals at 45k/day- 50k
Would NAT sell ?? and at what price is reasonable. 20-24/sh
In all likelyhood the 25 cents is the new temporary distribution. Keep in mind , just because oil is at 27.00 doesn't keep Exxon and Chevron from drilling for the motherloads.. With the dividends we save on a temporary basis , we use to pay off debts. Positive thing..IMO the management is on top of this, Plus I did read that Seadrills debt is insured.. Strong BUY. This is Ford at 1.00 Did you buy Ford. Well boys and girls You have another chance..
Take another view We save dividends and buy back our stock with that
This is a MLP They are making money at least thru 2018 to pay something. Otherwise its taxed..
This stock is a major retirement gift. Remember SFI preferred at 1.50 a share
They paid a dividend of 2.00 a share and eventually recovered to above 25.00 par
This boat hasn't sunk guys..
Understand how NAT is a moneymaking machine
Did you know we beat WR Grace on the quarter and 1000.s of others. Autozone only beat us by
30 mill. These tanker prices will spike due to this temporary cheaper oil.. You all know oil will spike in 60 days for spring..