IB Net Payout Yields Model

Invest like me - only at Covestor.com

Why Seadrill Ltd's Deal Russia Is a Huge Opportunity

By -

Alert investors shouldn't be all that surprised that despite a weak offshore drilling market, a Seadrill Ltd (NYSE: SDRL  ) subsidiary signed a landmark deal. In this case, relatively new spin-off North Atlantic Drilling Ltd (NYSE: NADL  ) reached a large deal to work with Rosneft, a large Russian energy producer. The deal was significant enough that Vladimir Putin is raising some red flags about its long-term validity.

North Atlantic Drilling is a pure-play, harsh environment firm with eight offshore rigs and a focus on the North Sea in Norway and now the Arctic Shelf aspirations of Russia. The company has a ninth rig under construction with a delivery date of 2015 and a likely destination of the Russian Arctic. The harsh environments of the Arctic are expected to contain vast amounts of energy resources, and North Atlantic Drilling happens to have a young fleet focused on the sector.

Read the full article here.


Disclosure: Long SDRL. Please read disclaimer page for more details.

Comments

Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts struggle to make the bullish case on expen
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disclosure: No
Read more