Buying oppurtunity or dead cat bounce?

havent done much DD but i heard there are talks of bankruptcy?

offshore drilling is very competitive right now, I am very bearish overall, and SDRL from my offshore experience, is a "lesser" driller, not sure it will make the cut, imo.

definitely not an investment, i will look into it but i dont think i will be playing it. i will let you know

Play it for its volatility but chapter 11 is a real possibility if they're not able to re-structure by April 30th I believe it is.

Yep they got the big debt due. I guess I'm trying to figure out if management thinks it best to try and avoid it or do they most likely want it for a fresh start? I was leaning towards playing it for a quick bounce before the inevitable.

Agnzona said:

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Yep they got the big debt due. I guess I'm trying to figure out if management thinks it best to try and avoid it or do they most likely want it for a fresh start? I was leaning towards playing it for a quick bounce before the inevitable.

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Could bounce above 2.00 in the near term (or go to 1.50). If restructuring is announced (not chapter 11) it could have a 30% day.

Down 25%.

1.25

I've still got a small stake in it, obviously at a loss right now....thinking about buying more now to hedge

Please do not buy SDRL, I've bagheld this company since it was $20something in 2014. I got my cost average down to $2.00 and then it went up and it was doing well towards the end of '16 and into '17.

Then it shat the bed. and I sold out. Just have some 2019 call options that are close to worthless.

They have $14 billion in liabilities, no real new big contracts, 42 different lenders that need to either be paid or restructured by the 30th of April. These talks have been going on a long time and have yielded little results. If they do restructure, the lenders will get a bigger piece of the company. Which management will be less inclined to do and there will be more share dilution.

Oil isn't going to reach above $60/bbl until probably later end of the 2nd half of 2017. SDRL is running on fumes, and I think the lowest point is still yet to come.

So do yourself a favor, buy VDE or XOM or hell, even RIG if you want offshore drilling.

snowmnag970 said:

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Please do not buy SDRL, I've bagheld this company since it was $20something in 2014. I got my cost average down to $2.00 and then it went up and it was doing well towards the end of '16 and into '17.

Then it shat the bed. and I sold out. Just have some 2019 call options that are close to worthless.

They have $14 billion in liabilities, no real new big contracts, 42 different lenders that need to either be paid or restructured by the 30th of April. These talks have been going on a long time and have yielded little results. If they do restructure, the lenders will get a bigger piece of the company. Which management will be less inclined to do and there will be more share dilution.

Oil isn't going to reach above $60/bbl until probably later end of the 2nd half of 2017. SDRL is running on fumes, and I think the lowest point is still yet to come.

So do yourself a favor, buy VDE or XOM or hell, even RIG if you want offshore drilling.

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Pretty sure this.

They do indeed have one of the newest fleets out there, and what would happen is the lenders would presumably take control of them and fire sale them to recoup their investment and then fly off into the sunset. That's why it's important for SDRL to keep Chp 11 away.

Well i just looked and as of close yesterday, I'm down $850 on it. I guess I should just jump ship rather than buy more this low, hoping to make some of that back

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What's going to happen to their assets? I haven't researched this claim, but a buddy told me that they have some of the most sophisticated offshore rigs...

Any way to capitalize on that?

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This is true. They have some great assets. But I think they will be lucky to get 10 cents on the dollar versus their cost. (That's what OCR paid for a similar rig about a year ago.) It won't cover their debt. So if you can buy SDRL debt for below that, I think you could make some money.

I have no idea how to actually do that.

Seadrill filed for bankruptcy in September 2017.
However, it is seeking new contracts (?)

Seadrill reportedly extends contract for West Hercules.

Interestingly, the company secured a letter of intent for West Phoenix for a job that starts in 2020.

The UK/Norway segment is heating up, which is positive not only for Seadrill's future.

I can't say I really understand, except it seems dead.

I got the notice of bankruptcy filing, since I still own their stock.....unfortunately

The West Capricorn is contracted through 2020, I think. My son is out there now.