Seadrill Ltd (SDRL)

[$tockfather]

GOOD READ!!! 4 Reasons Seadrill Presents an Opportunity at Current Levels

It seems that I am not the only one who can see an opportunity at current levels;)

http://www.fool.com/investing/general/2016/01/12/4-reasons-this-seadrill-presents-an-opportunity.aspx

Seadrill continues to manage the challenges of the down cycle in commodities, an environment likely to persist into 2016. Although shares trade well below tangible book value (a estimate of liquidation value), I can't help being concerned with the potential for an extended period of low oil prices. With that said, the market is already be pricing in an already dire scenario. This gives the company (and it's stock price) room for upside surprises. Also, I hold a somewhat optimistic and contrarian view of oil over the next one to three years.

I find the value in this best-of-breed offshore driller attractive at 15% of tangible book value, a very rough measure of its liquidation value should the worst come to pass. This company is a leader in the ultra-deepwater drilling industry, with a modern and versatile fleet, and it's run by one of the top operators in the industry with considerable insider ownership. The risk-reward scenario looks intriguing at current levels, provided one can stomach gut-wrenching volatility until the industry rebounds.