# Seadrill (SDRL)



## rossco12 (Dec 4, 2013)

It looks like Seadrill might finally be getting a little love. I'm into [email protected] 34.69. A little extra debt, but solid revenue, long term leases, and a massive dividend. It was a no brainer. Anyone else?


----------



## Jacq (Feb 8, 2014)

Me too. I started buying around Feb. I've been watching and wanting it for the last couple of years. Also picked up a couple of other offshore cos mid-March - Ensco, Noble and Transocean. The interesting thing is that the dividend I received (last month?) on SDRL in my taxable account had no tax taken off. Added bonus is that the divvy is paid in USD, so was 11% higher than stated dividend due to FX. Nice. each:


----------



## Jesse (Jan 21, 2012)

Getting punished today. Anyone thinking about trying to catch this falling knife? 

Pretty tempting at 14% yield


----------



## gibor365 (Apr 1, 2011)

Jesse said:


> Getting punished today. Anyone thinking about trying to catch this falling knife?
> 
> Pretty tempting at 14% yield


I;m just thinking  Have very small position ... A bit surprised to see so big drop last week...


----------



## liquidfinance (Jan 28, 2011)

Wow. 

Need to take a close look a this. 

p/e around 3 and divi of 15% The market must really hate this stock


----------



## gibor365 (Apr 1, 2011)

liquidfinance said:


> Wow.
> 
> Need to take a close look a this.
> 
> p/e around 3 and divi of 15% The market must really hate this stock


It was confirmed that dividend is sustainable to at least 2016... imho opinion, the major reasor on drop US sacnctions, even though, SDRL is Bermuda based company, as they have several deals with Rosneft


----------



## doctrine (Sep 30, 2011)

From another thread:



doctrine said:


> I took a quick look at Seadrill (SDRL) (I'll look at any stock reporting a P/E of 4) and it looks okay-ish. I would put the operating P/E around 8.7, and close to a 100% payout. Their operating margin is down year over year, and per-share revenue and earnings are down as well. Fundamentally okay, but they have to grow per-share revenue and earnings to see any significant capital gains (>20%). They could do it, and I'd say the dividend is safe unless Brent oil tanks, or.....
> 
> Here's the real risk: SDRL has some big contracts with Rosneft (up to 20-30% of revenue in the next 3 years), so they are possibly subject to sanctions. Rosneft is majority owned by the government of Russia. I would avoid based on this factor alone because of the uncertainty - remember the first rule of investing.. (don't lose money).


----------



## mars (Mar 11, 2014)

There are a couple of things going on with SDRL. Some believe with the oil renaissance in the US that companies will stop offshore drilling, so investment in offshore is down. Also today one of the board members stated he would not run for a board seat in November I believe. This person is considered the right hand of the guy who is the big shareholder. Exxon also closed down operations where it was working with Rosneft on a SDRL drilling rig because of the US sanctions. All of these things are combining to drive down the share price. I bought shares a while back when they were around the $34 range. They seem committed to maintaining the share price and actually had increased it before the last payout. I'll hold onto my shares as I still think it is a good longer term play.


----------



## rossco12 (Dec 4, 2013)

I sold my last position at 39.xx, and was waiting for something like this. Massive volume lately and one would imagine it is working it's way into oversold territory. Tried to catch the falling knife last week and got burned, and have reduced my position until a bottom becomes a little more clear. I broke your rule doctrine.


----------



## Moneytoo (Mar 26, 2014)

FWIW: http://www.thestreet.com/story/1288...kets-most-active-stocks-sdrl-rad-kgc-jcp.html


----------



## bettyboop (Dec 13, 2011)

SDRL suspended the dividend today, shares are down 22%. I am buying more but waiting to see if it goes lower with tax loss selling. Rigs are mostly booked until the end of 2015 with only 9% availability and company is buying back shares. It will may get worse before it gets better.


----------

