Thursday, February 19, 2015

Seadrill Even Leads Sector In Capital Distribution Plans


Summary

  • Transocean dividend cut proves that Seadrill appropriately paused the dividend three months ago.
  • The aggressive dividend cut by Seadrill provides more opportunity for management to allocate capital for long-term benefits.
  • The disconnect between earnings cuts and stock losses in the sector provide a great buying opportunity for Seadrill.
The weekend news that the CEO of Transocean (NYSE:RIG) was stepping down and the company is asking shareholders for a major dividend cut is another sign that Seadrill (NYSE:SDRL) is leading the sector. The offshore drillers remain in a grueling market downturn with plenty potential upside for the driller that pulls out of the downturn with the best positioned rigs and management teams.

Read the full article at Seeking Alpha.


Disclosure: Long SDRL. Please review the disclaimer page for more details. 



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