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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: deeno who wrote (21214)	11/26/2014 12:37:47 PM
From: JimisJim	Respond to of 34328

Agreed... good points... and am in no hurry to bolster the spec play... in OSX, the companies that husband their cash the best during the busts are the ones that really catch fire when things turn around and the next boom arrives... and, as always, when it comes to the oilpatch, it always overshoots to the upside in booms and to the downside in busts -- there will be way more pain in the next 3-6 mos. It should be noted that anyone wanting to cash in on the inevitable swings of oilpatch, and specifically OSX, now is the time to husband your own cash for the *inevitable* buy opps coming our way -- I don't need to catch absolute bottom, just be close enough, so will probably begin averaging into some very modest adds to my spec SDRL shares when tax-selling and/or further PoO (price of oil) pain appear to be at their max.

To: deeno who wrote (21214)	11/26/2014 12:47:44 PM
From: JimisJim	Read Replies (4) \| Respond to of 34328

Although, I note in the official news release that SDRL will be using some of the $2 billion in savings from divvy suspension to do share buyback: "SDRL expects the dividend pause to strengthen its capital position by $2B/year, which would be used to strengthen the balance sheet and invest in value-creating opportunities; the board authorizes a *share buyback program of up to 10% of outstanding shares over the coming 12 months." I've made my mixed feelings wrt to share buybacks vs. outright divvies pretty clear, but I guess it's better than nothing and in a sense, JF (the majority shareholder) will be increasing his holdings on the cheap, thus in the LT, increasing his own divvy income... Time will tell if he's playing this correctly, but I still think the fundamentals of SDRL make it a prime/solid spec play candidate* for cash one does not count on having for retirement sustenance. If it were to go completely under due to the sector fundamentals, so would 80% of all offshore OSX companies and I seriously doubt that will happen.