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Strategies & Market Trends : Dividend investing for retirement
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To: E_K_S who wrote (24446)3/4/2016 11:45:05 AM
From: JimisJim2 Recommendations

Recommended By
Mannie
Truedarkblue

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Action in SDRL looks like short covering to me... not sure it will be sustained as fundamentals for offshore drillers still looks pretty bad for the next 6 mos. at least... I'm not seeing any significant tick up in orders or backlog at NOV for example, and that has been a reliable indicator for the 30 years I've followed their capital equipment division (disclosure: I used to work there).

That said, would not surprise me too much if SDRL settled into a range at higher levels than what it's seen the last 6 mos. as -- obviously -- shorts had taken it too low... I still have SDRL on my watch list as well as a very tiny position (about 1/10 of full size) to keep me focused -- I give them a good shot at survival and if I'm right, they will lead all offshore drillers higher when things begin to recover for offshore -- especially ultra deepwater -- they have shown excellent ability to manage their capex, opex and debt when many others would be going under already in similar circumstances... whatever else anyone might think of JF, he's demonstrated an ability to retire debt aggressively in the face of the worst market in offshore energy in 30 years.
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