But bankruptcies are going to start for oil and gas companies, and the question is, can SDRL last into 2017 with contracts to weather the bankruptcies? If so and oil recovers, BOOM!

That's really the only question...

Way too much uncertainty with the breakdown of technical fundamentals, contract cancellations and looming dilution.

Was out at $3.48 on the technical breakdown and will watch this wrestling match from the sidelines until something changes. I like their prospects, but feel it's going to get worse in the near term...

...And now we really know....

If history repeats itself, it's 2008 for financial stocks, all over again. In the near term, for sdrl, the technical day of reckoning is upon us. A week or so, and we'll know...

Tell them to go through all the filings, financial statements and then determine how they shed a friggin projected $40M revenue SEO company and the players all go start their own firm...

For starters...

Here's all you need to know...

1. The little guys gets it in the rear.
2. This completes the theft of the Board and the others that perpetrated the pump and dump, rid themselves of revenue and stole the company - essentially.

And, the SEC does nothing about it. Welcome to Wall Street.

doesn't take much to move it...

OK, full on squeeze...

This is a mini-short squeeze

technically speaking, this is set up to run into the mid $5s - IMO

Here's Kiplinger's take on oil...

Commodity prices will continue to languish due to lack of demand, but oil, at least, will stabilize, averaging between $45 and $55 a barrel in 2016, up from its August low of $38 a barrel. The dollar, already up nearly 20% since July 2014, will tack on another 5% to 7% against a basket of major foreign currencies as the Fed embarks on a course of modest, gradual rate hikes, while central bankers in Europe, Japan and China go in the opposite direction. A beefier buck will continue to bedevil U.S. multinational companies, as their goods become more expensive overseas and foreign sales translate into fewer dollars.

Read more at http://www.kiplinger.com/article/investing/T052-C000-S002-where-to-invest-in-2016.html#XLWTTe1mkFOC5F5D.99

I think...

The economy isn't as strong as they believe it to be, but more importantly...

OPEC can out produce other nations at a lower price, and they intend to try to push other nations out of business in this sector. This is their one and only leverage over us, and they're trying to continue to maintain this leverage...

Will it continue is the multi-million dollar question?

Bought another 1,000 shares on Tuesday at 6.08...close enough to warrant the buy...

I expect a nice R/S prior to anything happening...count on it.

In my view, SDRL was preemptive in their cutting the dividends earlier than most companies. That saved a ton of cash...

SDRL is not delusional about the current environment, and has been managing their business appropriately. I think this is like a Ronco Rotisserie...

Set it and forget it at these levels.

When you, as a company, sit on your hands and don't do anything until it's time to cry uncle, sure RIG is going to drop further like a rock...

SDRL was preemptive and cut its dividend months ago, saving tons of cash, and showing that management has their finger on the pulse of what is going on at the moment...

How long this sustained drop can last is anyones 'guess'...

You are the one who wrote the article on seeking alpha, eh? Great read!!!!!!

I knew that...

It's also funny how when the stock begins to rebound, here comes the Motley Fool covering short interest increase all the way back to 7/15...

Thanks Motley!!!

this aggressive push upwards looks like covering to me.

The boys in the middle east/russia are finally realizing that they are wasting resources and can gain more margin by cutting production...

DUH! Economics 101

All it takes is an earnings....

...and I'm an insurance broker that sells the product that I speak of...

I did respond to you, but admins took it down because I questioned your credibility if you don't know that this is the way these things work.

D&O insurance is EXACTLY for this type of non-sense, and the BREAKING NEWS section is lawyers issuing press releases in the 'hope' that people hop on board, with the exception of one class action that was filed. Nevertheless, exposure to this, meaning deductible, will be in the neighborhood of $250-$500k - like I said.

So what I am saying is this...

They won't be buried in legal fees...

Have a nice day!

First and foremost, the defense costs on something like this will be minimized by their Directors & Officers Liability policy. In all likelihood, their deductible is in the neighborhood of $250-$500k.

As long as they didn't intentionally make any misleading and false accusations, the lawyers will run out of money before the carrier does. And this is all to say that only one class action suit has been filed from the media headlines, the others are just trolling for additional class action shareholders so they can get in on the settlement.

Make no mistake, there may be a settlement of a quick few million, if at all, but the lawyers will take 30-40% leaving the balance to be paid to shareholders, which ain't much.

Business as usual, these legal issues are likely driven by market conditions turning, which is explainable in a court of law. They come back with a vengeance, the stock recovers and the lawyers claw back into their holes - yet again.

I'm just sayin'...and my profession allows me to say all this with pretty strong certainty...

If it makes it through Congress...

Plus, if you really read the press release about the sale of the rig, rather than jump to a conclusion from a headline (everybody gets enough exercise from doing that), you'd see it was a really savvy move on their part.

1. They get out of the debt load of the rig.
2. They secured a 50M note due 2021 at I believe 6.2% interest annually.
3. They receive additional monies for any daily rates over $450k
4. Without having the debt service to deal with or listed on the balance sheet, paving the way to take delivery, when necessary, on some of the newer rigs in the future.
5. Secured a cash payment to help meet needs in the near term.

The Middle East is powder keg and Russia is unstable. You're right, any hiccup or war, oil is going to go through the roof and frankly, oversupply is starting to erode, albeit slowly (without a global event).

GLTY

Nice article, thanks for sharing!

Shorting going into earnings tomorrow is a death sentence if you ask me. Results have been slashed and when OPEC meets in June, word is, they will likely cut production.

Cut production, drillers are back in business.

This is a repeat of the financial crash, but oil this time. Just like the financial crash, sell off FORD, they're going to go under because the US Govt bailed GM...

Well, had you held Ford from $1.05 low...

You'd be doing alright...

Bargain basement prices and when the offshore market resumes, one company is set to capitalize, as the weak players die or retire old rigs...

You guessed it...SEADRILL!

Yeah, the weekly is screaming EXPLOSION SOON!

If they reinstitute the dividend, we could be up 30%+ in a day...good trading to you.

I see the potential for another hammer candle, which holds the RSI at close to 50...

Watch for it...

I absolutely love when people say technical analysis doesn't work, as sorry, I was a day late. technical analysis called this major balance today, whether you like it or not

technical bounce, but depending upon the candle and volume, it could continue

Barring any negative news, tomorrow should explode north

this thing is gonna go kaboom in the near future.

for those playing at home, that means up

now it's really over

Agreed. Anything under $20, IMO, is a fire sale. From $20, you easily get a 50% return in a year + the dividend? No brainer.

Take a look at the weekly chart, if you can stomach the daily fluctuations, but according to the weekly...

PARTY JUST STARTED!!!!!!!!!!!!!!!!!!!!!!!!

OK, so I was a day late...

Analysts = self serving.

The sad part is that the herd listens to the pundits and loses.

Isn't it funny that oil is moving north, and so is the stock, and all the 'professionals' are saying that SDRL is a crap stock and to sell.

So sad, but I have enough SDRL to flip the 'pundits' the bird.

This thing wants to explode north...

OK, so I was a day off.

Wouldn't want to hold a short position in this long...