Replies to post #2055 on Seadrill Ltd (SDRL)

[MisterEC]

Seadrill To Emerge From Bankruptcy Within Months At A Fraction Of Its Current Valuation

Summary
Court confirmation of the company's plan of reorganization caused another momentum run.

Equity is trading more than 100% above the high end of the valuation range calculated by the company's bankruptcy advisors and 70% above market leader Transocean.

Using the company's advisors' equity valuation range, current shares are worth only between $0.125 and $0.177.

A short position should yield decent results but sky-high margin requirements remain a major obstacle.

Wait for the momentum crowd to move on before entering a short sale.

Seadrill To Emerge From Bankruptcy Within Months At A Fraction Of Its Current Valuation