Vantage Drilling Company Common Shares (VTGDF)

[seven-up]

Vantage drilling Int'l is struggling and its balance sheet is a real concern. With only one drillship and two Jack-ups at below the breakeven day rate, I do not see how the company will be able to survive after 2017, unless it manages to contract one drillship at above $350K/d. VTGDF fate is of course attached to VDI.

I have many doubts the company can survive 2017 and I do not see how the company could be acquired by a competitor with a long-term debt of $850 million on the balance sheet?

However, It is possible that the company will have to sell the drillship Titanium explorer and the drillship Platinum explorer in 2017, at distressed price, to save some stacking cash, and to monetize good idle assets? One or two Jack-ups may be sold as well.

I recommend to avoid VTGDF, and I do not think that the stock presents any value or potential values. Use extreme caution.[color=red][/color]