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Monday, 09/12/2016 11:05:43 AM

Monday, September 12, 2016 11:05:43 AM

Post# of 2606
The Dog wants a bone.

Avoid Seadrill For Now

Summary

Seadrill watched its stock price drop by more than 95% from the start of the oil crash until its lows in February 2016. (If one bought in during the sucker rally earlier in the year, well one kicked their own butt, huh?)

Seadrill has a large young fleet which should be key for getting good contracts. However, the company is also struggling under more than $10 billion in debt.

The company's September 2017 debt maturity will likely require issuing a significant amount of equity. This equity dilution will hurt present investors.
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