Are they kill? Stock is below 2$ again

SomethingNew
SomethingNew

Are they kill? Stock is below 2$ again. Institutional ownership only 35% so who is holding the bag here? Retail?

All urls found in this thread:
https://finance.yahoo.com/news/oil-prices-climb-opec-deal-005854761.html
PackManBrainlure
PackManBrainlure

Book value for share is $19, meaning they have a crap load of assets. Heck 2 dollars and 80 cents of that is cash.

So right now the stock is worth less than the cash the company has!

What does this mean? Would I invest? No, they are too risky for me. That said no they aren't going under and have time to recover. A junk bond might be the best buy in this situation. Guaranteed recovery on bankruptcy.

Emberburn
Emberburn

@PackManBrainlure
book value is massively overstated though, dont know by how much but at current oil price rigs arent worth their book value, far from it.

Flameblow
Flameblow

@Emberburn
Book value is book value. Don't confuse it with market value. That is not important unless they are liquidating.

BlogWobbles
BlogWobbles

@Flameblow
are u daft.

book value can easely change.

or you think "write downs" never happen? Server equipment from the 1970s is still worth the same BV as when it was bought?

Dumb

LuckyDusty
LuckyDusty

@SomethingNew

As someone who owns around 500 shares that i bought at $6.91 each, I would say they are fucked. They are on the verge of bankruptcy at this point.

They have something like $10 billion in debt and are losing hundreds of millions of dollars every year. Offshore drillers need oil to be at least around $60 a barrel just to break even, and the operational costs per rig are something like $200k every day.

Really the only hope for this stock is if OPEC agrees to cut output and Hillary gets elected and shuts down fracking in the US.

VisualMaster
VisualMaster

offshore drilling won't be viable for 50-100 years from now. Look at what fracking in North America has done to the oil market in only 15 years. And the rest of the world hasn't even started fracking!

FastChef
FastChef

@BlogWobbles
I honestly don't understand your point. Are you implying that because an asset can be written down that book value per share is a worthless metric?

@VisualMaster
offshore drilling won't be viable
Not every offshore drill is losing money. Many are still making bank even in a low oil price environment.

@LuckyDusty
owns around 500 shares
Why did you buy it anyway? Big oil being beat down was a much safer option plus a good dividend.

PurpleCharger
PurpleCharger

@FastChef
√Źn some cases like this it is.

Stupidasole
Stupidasole

Every single day I think "this is the bottom". Fuck me in the face with all 1000 of these worthless shares.

Nojokur
Nojokur

@FastChef
Why did you buy it anyway?

I was looking for low priced oil stocks that I thought would rise on an oil recovery. I also own shares of EMES and RIG. I made a nice profit with EMES, but RIG is in the same boat as SDRL.

Big oil being beat down was a much safer option plus a good dividend.

If i could go back in time and know what I know now, i would have probably bought shares in BP

happy_sad
happy_sad

@Nojokur
I was looking for low priced oil stocks that I thought would rise on an oil recovery.

I did the same back in February of 2015. I looked at Seadrill and BP. In the end I decided on Exxon or Chevron, then Exxon because I trusted they would keep the dividend.

It was still a bad investment. Only made 7.2% in a year and 4 months.

Gigastrength
Gigastrength

I'm in this too. 400 shares @ avg 3.61.

I have faith. These guys are creative and hustlers with a bunch of relatively new equipment.
So from my perspective this is a very long equity burn time, where the banks will be willing to work with them.
From what I see they keep snagging contracts and the customers are happy with their service but maybe not always their price.

I'm making money back selling puts on the shares recovering or leveraging in for discounts.

I should see a return on my cost basis in 18, 45 day cycles with no uptick.

Its an experiment with high alpha acquisitions and averaging + leveraging down. So my min holding time is 9 quarters. At that point I should own my shares for near 0.

SniperWish
SniperWish

@Gigastrength
I have faith. These guys are creative and hustlers with a bunch of relatively new equipment.

None of that means anything if they can't turn a profit. They are operating at a massive loss and will continue to lose money unless something significant happens.

Ignoramus
Ignoramus

@SniperWish
Their earnings are positive. Though I didn't read enough to know if they are because of revenue or asset sales. I do know Exxon paid them a lot of money to get out of a contract.

Skullbone
Skullbone

Thats great to hear guys, im short with approx 16k shares.
@Gigastrength
@Stupidasole
@LuckyDusty

Flameblow
Flameblow

@Skullbone
what's your stop?

Gigastrength
Gigastrength

@Flameblow
10% trailing.

Illusionz
Illusionz

@Skullbone
Of all the stocks to short. You pick one that is already low priced and has upside to oil and good news. Plus extreme volatility. That is madness.

Short netflix ahead of earnings. Don't short seadrill!

Need_TLC
Need_TLC

the fucking timing of this thread

L M A O
M
A
O

5mileys
5mileys

@Need_TLC
It is still a bad investment. All the safe oil stocks are up also. Besides no one really trusts the muslims to actually carry out what they say.

Fried_Sushi
Fried_Sushi

Sold my 1k shares a few min ago @2.43. Will buy back in under 2.15

likme
likme

@5mileys
no one really trusts the muslims
https://finance.yahoo.com/news/oil-prices-climb-opec-deal-005854761.html

Spazyfool
Spazyfool

In as well for 556 shares avg price of $5.97.

so who is holding the bag here?
us plebs

Whats everyone's excuse for not selling March 4th?

Playboyize
Playboyize

@LuckyDusty
r u gonna vote 4 hillary

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