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Started By
Message
re: Seadrill (SDRL) has a yield of 0%.
Posted on 11/4/14 at 1:16 pm to I Love Bama
Posted on 11/4/14 at 1:16 pm to I Love Bama
That is my point and why I wouldn't buy right now. The price may continue drifting downward until there is a bit more clarity on the dividend and the future price of oil.
2
Posted on 11/4/14 at 1:28 pm to Douglas Quaid
Posted on 11/4/14 at 4:18 pm to samson'sseed
20% down is my breaking point. Good luck to those still in that can withstand more pain than me. Too many other good alternatives out there right now for me to keep banging my head against the wall.
Posted on 11/13/14 at 9:46 am to go ta hell ole miss
Solid article on SDRL - LINK
quote:
SDRL risks are fully reflected in the stock.
SDRL's rig utilization rate, minimal short-term debt obligations, and industry-best dividend are all reasons to buy.
Oil is historically volatile, and will recover until a large scale alternative is found.
Concerns of dividend risk are overstated, if not illogical given SDRL's recent history.
quote:
the price of oil, and oil demand will naturally fluctuate over the years, but historically has risen. Therefore, given the large investments that Seadrill made in its rigs, the most important thing for long-term investors is that rigs are being utilized, approximately 90% to 95% of rigs under contract. In 2015 Seadrill faces the risk of, maybe, three of its 51 in-the-water operating rigs not being under contract, giving it a utilization rate of 94%.
quote:
Even if Seadrill were, by some chance, to cut its dividend in half, that's still a 9% yield at current prices, and better than just about any other company in the market. So in retrospect, who cares if Seadrill does cut the dividend, its payout will still trump all competitors, thus making dividend-related fears seemingly irrelevant.
quote:
All things considered, investors really need to put Seadrill's current 18.5% dividend in perspective. With the stock trading at near 52-week lows with losses in excess of 50% over the last year, Seadrill's dividend serves as a great hedge. After Seadrill's stock losses, and with it trading at just 6.6 times next year's expected earnings, investors have 18.5% of downside protection over the next year.
quote:
As a result of these favorable scenarios, including Seadrill's valuation and the degree of loss that would have to occur for a negative investment return, it seems almost crazy to sell shares of Seadrill right now. There's just too much stock upside, and very little downside due to the size of its dividend.
This post was edited on 11/13/14 at 9:47 am
Posted on 11/13/14 at 10:12 am to TigerTatorTots
Just got in @$20.65.
Posted on 11/13/14 at 10:15 am to OceanMan
If it goes below $20, I'll add some more shares to my $22.50 position to average it down
Posted on 11/13/14 at 10:17 am to TigerTatorTots
may happen by lunch 
Posted on 11/13/14 at 10:34 am to yellowfin
Jus looked up this ticker. 20% yield???
Posted on 11/13/14 at 10:38 am to LSUneaux
$1.00 per quarter...price is down about 10% from last month. I jumped in when it was a 14.5% yield. The CEO says the dividend is locked until 2016. Even if it is slashed in half (that is the fear and one of the reasons why the stock has fallen over 50% this year), you are still looking at a 9% yield today. The company is the best positioned of all the deep water rig companies right now - youngest fleet, 94% of assets are on contract through 2015, and they get a premium day rate over others in the industry
Posted on 11/13/14 at 11:01 am to TigerTatorTots
Thanks. So the dividend itself is locked until 2016, or the $1 is?
Posted on 11/13/14 at 11:52 am to LSUneaux
The $1.00/quarter is the dividend. The percentage yield varies with whatever the stock price is. When I bought, it was 14.5%. Today, its 19% based upon the lower stock price. The CEO said it is safe into 2016...that doesn't mean it cannot be slashed. Those are the words from the CEO though so I'd feel rather good that will be the case. Like I said, even if it is cut in half, you are still looking at a 9% yield.
This post was edited on 11/13/14 at 11:53 am
Posted on 11/13/14 at 1:42 pm to Douglas Quaid
SDRL looking to test the 52W lows again today.
Posted on 11/13/14 at 1:43 pm to Douglas Quaid
Hmmmm
Posted on 11/13/14 at 1:51 pm to jimbeam
when should I buy?
Posted on 11/13/14 at 1:52 pm to cjared036
When you think Oil has bottomed out. I don't think that happens till we hit $70/ barrel and a lot of people think we could go sub $50. If that happens I don't see this company making it.
Just understand you're gambling and politics will play a major role if this company survives or not. Just my two cents which isn't worth anymore than yours.
Just understand you're gambling and politics will play a major role if this company survives or not. Just my two cents which isn't worth anymore than yours.
This post was edited on 11/13/14 at 1:54 pm
Posted on 11/13/14 at 2:11 pm to I Love Bama
Which includes Russian politics in the oil discussion.
Posted on 11/13/14 at 2:17 pm to I Love Bama
Yea this is a mildly risky stock to jump into, however it is set up the best of all the offshore rig contractors. They have 94% of their rig assets on contract through the end of 2015. If you think oil will still be below $70 come 2016, then yea, this company will be in trouble. I'm not seeing it staying that low for that long.
If you think oil will be going below $70, you shouldn't be buying any oil energy related stocks frankly.
If you think oil will be going below $70, you shouldn't be buying any oil energy related stocks frankly.
Posted on 11/13/14 at 2:17 pm to I Love Bama
quote:
When you think Oil has bottomed out. I don't think that happens till we hit $70/ barrel and a lot of people think we could go sub $50. If that happens I don't see this company making it.
If we go below $50/barrel, there will be alot more to worry about than SDRL.
Posted on 11/13/14 at 2:20 pm to Bear Is Dead
quote:
If we go below $50/barrel, there will be alot more to worry about than SDRL.
ExactlyPosted on 11/13/14 at 2:52 pm to TigerTatorTots
10/1/2013 SDRL BOUGHT 100 SHARES OF SDRL AT $46.086
11/11/2013 SDRL SOLD 100 SHARES AT $46.4045
this was almost a catastrophe for me. glad i got the fack out
11/11/2013 SDRL SOLD 100 SHARES AT $46.4045
this was almost a catastrophe for me.
glad i got the fack out
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