Deepwater contracts are not renegotiable. Dayrates in the short run are not influenced by oil prices. The contracts at these levels are firm and the driller has lots of ways to enforce.
Exxon or BP would try and renegotiate and thus harm their reputation. That would make future contract negotiations that much more difficult.
ABBV approval has nothing to do with GILD armor. Look at the script numbers and the new contracts. I'm sure ABBV will be successful overall as a company across all its products. Their success will not have a material effect on GILD. GILD continues to execute and increase sales regardless of the headline noise.
I disagree with your analysis. 50% discount on a 90% Gross margin product results in 80% gross margin.
GILD revenue growth will continue with lower prices. Gross profit margin will be high as will net profit margin and net profit dollars. List price earns nothing in the first place. This has been true for 30 years in the enterprise technology space.
If you take any of the following medications you cannot take Ribovarin which is required for Abbvie HepC treatment. Consequently, Express Scripts must allow Harvoni or face litigation. Further if Express Scripts charges the patient more for the copay because it is not on formulary they will also face litigation.
• VIEKIRA PAK and RBV drug interactions
•MUST NOT TAKE VIEKIRA PAK IF YOU
• take any of the following medicines:
•alfuzosin hydrochloride (Uroxatral®) -
•Tegretol®) - efavirenz
•Atripla®) - ergot containing medicines including ergotamine tartrate
•Wigrettes®), dihydroergotamine mesylate
•Methergine®) - ethinyl estradiol-containing medicines - gemfibrozil
•(Lopid®) - lovastatin
•Mevacor®) - midazolam (when taken by mouth) - phenytoin
•Phenytek®) - phenobarbital
•Luminal®) - pimozide
•Orap®) - rifampin
•Rimactane®) - sildenafil citrate
•Revatio®) when taken for pulmonary artery hypertension (PAH) - simvastatin
•St. John's wort (Hypericum perforatum) or a product that contains St. John's wort - triazolam
•IF WITH RBV, THEN DONT TAKE VIEKIRA IF
•The anti-HIV drug zidovudine (see fact sheet 411) can cause anemia and should not be combined with RBV.
•and ALL THESE TOO:
HIV and HCV are common in 25% of patients
◦antacids containing aluminum or magnesium
◦Chinese herbal medicine (sho-saiko-to or Xiao Chai Hu )
I agree. This a bear market rally in the oil industry. Some of the best rallys are in a bear market.
I don't want to buy rigs at $0.40 on the $1. I want positive cash flow after debt payment. EBITDA is of no interest. PACD will not be sold, so the only value is determining future earnings and cash flows. Long term PACD is a solid company with solid mgmt. great reputation, high spec rigs in the UDW space.
Then you are trader and not investor. That is risk you take. PSEC is poor trading company.
The company is designed to return dividends to long term shareholders over time. I sold 95% of my PSEC since I don't trust mgmt. as I once did.
Analysts cannot defend a lawsuit. Arista will have the lawsuit as an overhang until the suit is settled.
The company will do well as it always has in the market. The stock will stay within a trading range IMO.
If you need to ask then you shouldn't buy options, especially if you asking on a public board with majority of posters who have little credibility or transparency.
You guys are foolish traders talking about your skill and long term investing skills.
This company will not fold. If you think it will then provide detailed support for your thesis. Otherwise you and synch are just talk no analysis.
I'm not waiting on the dividend. This is capital appreciation play from the bottom. As dividend players migrate out value players will buy-in starting in 1st qtr. 2015. I'm familiar with crude and this CEO. The company is well positioned now to weather the next 2 years. D/E is 100 and will decrease as suspended dividend pays down debt. You don't present any specific knowledge of the offshore drilling market or an understanding of European stocks. Why you would say contracts are meaningless in a market valued by projected firm contract revenue demonstrates your ignorance of offshore. This is cyclical industry that is hitting near bottom in 90 day period that has firm revenue through 2016.
The revenue and expenses are clearly set and can only go up by the company closing new contracts for new builds. They have 18-24 months to close those agreements. Until you demonstrate specific knowledge of this industry your generalized statements are meaningless.
The dividend play in this industry is SDLP, but you would probably argue against that given your limited knowledge of this industry and the financial structure.
They are shifting to a software NFV model to replace hardware. While the margins are high in software, the actual revenue number decreases substantially. The major service providers like VZN are where they want to get huge revenue and they are betting big money they can take share from Cisco and Juniper in that space. I'm skeptical, especially with such a long sell cycle. The expense side, the dividends and the buy backs are all positive. The revenue is key. If they don't grow this year then they will be discounted as a player in IP. I see better opportunities.
Yes I'm naive to think JF will change his pattern of operating his companies. How familiar are you with ownership structure of SDRL? How familiar are you with European model of treating dividends? Do you know the contract structure for SDRL for the next 2 years with projected cash flows? How long have you been investing with offshore oil companies? This is not a US REIT or holding company like ACAS.
SDRL is not a US company. They grew because of debt. They have started to fix the balance sheet with D/E of 100 today. The dividend cut will be used to pay down debt. As a European company they will bring back the dividend in 24-36 months. Europeans treat dividends much differently than US. When offshore drilling comes back the debt and dividends will follow in this company.
This is rotation of dividend investors out of a stock that suspended dividends exacerbated by a poor market outlook. The selling is expected. The value investors will come into SDRL in January. Until then the trend will be down.
BRCD has flat IP product revenues. That is the future of the business. SAN is a great cash cow, but no one highly values technology companies with no growth. The EPS growth is all based on stock buy backs. That will only go so far. 2015 is the year BRCD must increase revenue growth substantially or this will be a $6 stock again. Then someone may acquire them for the cash cow.