Seadrill Partners LLC. (fka SDLPQ)

[jugs]

Watching SDLP and parent/General Partner Seadrill, I'm of the belief units will continue to drop still further. I'm expecting a new bottom in the $2.75 range, possibly by November.

Oil has bee losing ground as we all know. Without a catalyst for higher valuations across the sector as a whole, I'm not able to support a rising unit value. In fact, I'm not finding any reasons for joy at all. I've got dry powder but couldn't justify allocating any to this pick.

Now, this may change, but it will take months, I hold. Offshore drilling responds to two things in particular: Promise & lament.

I see a number of laments all around us. I see no promises.

In fact, what I sense is general malaise in energy. One would think we no longer need hydrocarbons, silly as that may be. So despite having some idle cash, I'm OK with that as opposed to chasing a dream of "yesterday."

When energy perks up due to issues having to do with undersupply as opposed to oversupply, or there's a threat to global supply and demand balance, things will likely change. But for now? I'm staying away.

But I'm watching and always ready for making moves.