Seadrill Ltd (SDRL)

[ogbull]

Two years ago SDRL was selling for about $47.00 per share.

SDRL has the most modern fleet of all drillers.This cost them a lot of money so they have some debt. But this debt is secured with a modern drilling fleet. SDRL will solve their money problems.

Having the most modern fleet increase the demand for their rigs over other drillers. This is the big plus for SDRL over RIG and others.

Nor does SDRL need to scrape any rigs. This means they do not need to take huge write-offs against profits.

Sure, offshore drilling activity is slowing down. But this will not last forever.

There is evidence that frackers will have to deal with a lot of wells going dry. Fracking is not a reliable way to maintain steady production. The biggest discoveries will come from offshore operations.

Here's the big plus: SDRL is now selling for $10.85 per share, down $36.00 per share from where it was 2 years ago. This is less than it was selling when WTI was $43.00! If share price recoups back to $21.70 by this time next year, you will only double your money. If it goes to $32.00, you will only triple your money.

Stock traders are gamblers. They like to bet on a stock with a 200% 2-year payoff potential. That's why I'm back in. Others will see this and start accumulating.

At these numbers, SDRL is a super strong buy. There are a lot of big money traders that would rather convince you that SDRL will collapse. That because they want to buy the shares cheaper for themselves.

If you want to play it safe in the oil market, buy XOM. You'll make a 5% return on your investment and you'll sleep good. Want to earn 200% return? Then buy SDRL.