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Message
re: Seadrill (SDRL) has a yield of 0%.
Posted on 11/13/14 at 2:55 pm to donRANDOMnumbers
Posted on 11/13/14 at 2:55 pm to donRANDOMnumbers
That would have been a looooooong ride down
Posted on 11/13/14 at 2:56 pm to TigerTatorTots
dat profit doe
sad to say the money wasn't good use elsewhere. stupid CAK
sad to say the money wasn't good use elsewhere. stupid CAK
Posted on 11/13/14 at 3:05 pm to Bear Is Dead
quote:
If we go below $50/barrel, there will be alot more to worry about than SDRL.
Like what? Demand isn't going down in the US, it's just an oversupply of oil on the market. Oil was very cheap before 9/11 and all the middle east turmoil ($20ish a barrel). Our economy was booming then.
This post was edited on 11/13/14 at 3:08 pm
Posted on 11/13/14 at 3:10 pm to I Love Bama
You are talking about hundreds of thousands of jobs lost. Probably hundreds of oilfield related companies going out of business. All the billions of dollars of assets and infrastructure for shale/fracking no longer being produced. There is a ripple effect
Posted on 11/13/14 at 3:17 pm to TigerTatorTots
I won't get into the specifics, but I can't stand that argument regardless of the industry.
Do you drive a car? Think of all the horse and buggy companies you put out of business.
You can listen to music on your Iphone? Damn all those sony walkman employees...
Economies change and fluctuate. Oil and gas are going to really be hurting when solar power reaches the efficiencies it needs to be profitable in a few years.
In fact I would be surprised if my job was around in 10 years due to the advancement of computers and AI. It's just the way the world evolves...
ETA: To address your comment directly, there will me MANY more companies that benefit from cheap oil. It will all even out...
Do you drive a car? Think of all the horse and buggy companies you put out of business.
You can listen to music on your Iphone? Damn all those sony walkman employees...
Economies change and fluctuate. Oil and gas are going to really be hurting when solar power reaches the efficiencies it needs to be profitable in a few years.
In fact I would be surprised if my job was around in 10 years due to the advancement of computers and AI. It's just the way the world evolves...
ETA: To address your comment directly, there will me MANY more companies that benefit from cheap oil. It will all even out...
This post was edited on 11/13/14 at 3:18 pm
Posted on 11/13/14 at 3:24 pm to I Love Bama
Im not a global oil expert, not even close. However, If oil goes from $110 down to sub $50 in one to two years, i think there will be problems on planet earth.
Posted on 11/13/14 at 3:26 pm to Bear Is Dead
However, If oil goes from $110 down to sub $50 in one to two years, i think there will be problems on planet earth.
Can you add some color to this argument? I'd like to understand your viewpoint. Oil has been cheap before and everything was great.
Can you add some color to this argument? I'd like to understand your viewpoint. Oil has been cheap before and everything was great.
Posted on 11/13/14 at 3:31 pm to I Love Bama
Im not arguing, I am in no way informed enough to know what would happen.
I just dont see how something bad wont happen in or relating to the middle east if oil is below $40/barrel.
I just dont see how something bad wont happen in or relating to the middle east if oil is below $40/barrel.
Posted on 11/13/14 at 3:34 pm to Bear Is Dead
Just a discussion. Not trying to argue with you guys either.
I personally don't think it gets anywhere near that low. But if it does, it will make a lot of other companies very profitable. As a blanket statement, cheap energy is GREAT for an economy.
I personally don't think it gets anywhere near that low. But if it does, it will make a lot of other companies very profitable. As a blanket statement, cheap energy is GREAT for an economy.
Posted on 11/13/14 at 3:41 pm to I Love Bama
I guess i would have to know how it affected the LNG market, whats going on with alternative energy, how do other commodities look? etc.
I love rice and beans, I just dont want to have to kill people to protect my stash of them.
I love rice and beans, I just dont want to have to kill people to protect my stash of them.
Posted on 11/13/14 at 3:52 pm to Bear Is Dead
Another good article on SDRL. If yall aren't signed up for Seeking Alpha, I suggest doing so. Its free and has great articles.
LINK
LINK
quote:
When it comes to Seadrill, investors mostly focus on its extreme dividend yield, or its leveraged profile compared to peers. As a result, investors seem to think that an impending dividend cut and Seadrill's comparatively high levels of leverage are the reasons why its shares have performed so poorly lately.
quote:
A look at the performance of Seadrill's peers, however, shows that investors are not only critical with respect to Seadrill, which makes it unlikely that leverage and dividend concerns are the only drivers of the recent value destruction: All offshore companies are down sharply over the course of this year.
quote:
Downturns in the offshore drilling business come and go, just like in any other business, so investors really need to keep a sense of proportion here.
Seadrill is one of the largest offshore drillers in the business, if any company has the ability to withstand a short-term downturn and refinance debt, it should be Seadrill.
Further, Seadrill has working and contract relationships with the largest companies in the energy sector: From ExxonMobil (NYSE:XOM) to Chevron (NYSE:CVX) and Hess (NYSE:HES), all major energy firms can be counted among Seadrill's clients. More importantly, Seadrill continues to benefit from a massive build-up of work that needs to done.
quote:
With falling oil prices, drilling becomes less attractive. Higher oil prices, on the other hand, often lead to a gold rush mentality, that can cause a serious increase in drilling activity. As logical as this is, it is also important to realize that a business, especially one of the size of Seadrill, can't be run based on where oil prices are heading on any given day or week. Seadrill is in the business for the long haul, and investors should be, too.
quote:
Bottom Line
Seadrill remains a hotly debated stock, and discussions usually center around three themes, which are all very well known and understood: Sector slowdown, high leverage, and an impending dividend cut.
But how about taking a step back and realizing that Seadrill is well positioned to withstand softer short term growth. Oil prices also won't stay low forever. As soon as oil prices turn, I would bet sentiment towards the offshore driller changes about as quickly as it went south over the last three months.
If investors have an investment horizon of only two or three months, I understand the unsettling debate over the three themes mentioned above. Long-term investors, though, should carefully take into consideration Seadrill's superior fleet profile, large size, fantastic order backlog, and good standing among customers. All other problems are solvable. Long-term Buy.
Posted on 11/13/14 at 4:23 pm to I Love Bama
quote:
As a blanket statement, cheap energy is GREAT for an economy.
not in south la
Posted on 11/13/14 at 4:30 pm to yellowfin
quote:This is my mindset when I am saying how low oil prices is a bad thing. I am mainly thinking about Louisiana with my response earlier
not in south la
This post was edited on 11/13/14 at 4:31 pm
Posted on 11/13/14 at 7:54 pm to yellowfin
quote:
not in south la
Yeah lots of people hurting in South LA if oil/gas prices are low.
Posted on 11/13/14 at 10:13 pm to yellowfin
quote:
quote: As a blanket statement, cheap energy is GREAT for an economy.
Typical gump
Posted on 11/21/14 at 4:24 pm to jimbeam
Does SDRL usually have a P/E of 2.5 or is this really really an exceptional time to buy?
Posted on 11/21/14 at 4:58 pm to LSUneaux
Well it is down over 50% this year...
Posted on 11/22/14 at 8:49 am to TigerTatorTots
If yall are looking for a dividend stock, why not NTI?
Posted on 11/25/14 at 11:14 am to donRANDOMnumbers
Thoughts on whether dividend is cut tomorrow?
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