Primobolan En Pastillas,Methandienone Msds,Steroids Injection Gone Wrong
If investors read my view on Seadrill (NYSE:SDRL) in the last 3 4 months, I have consistently maintained a bearish view with my opinion being Achat Kamagra Pas Cher to remain on the sidelines. My bearish view certainly didn't imply that Seadrill is not a good company.
The stock has created immense shareholder value in good times and I still hold the view that Seadrill will make a comeback when oil prices recover. The oil price recovery might not happen immediately with the current supply glut. Therefore, the important factor for Seadrill is survival and conservative Primobolan En Pastillas financial policies.
From a conservative financial policy perspective, Seadrill has done an excellent job by suspending dividends. The stock price crash has hurt investors, but on taking a long term view, the decision seems right.
Amidst all the difficulties that Seadrill has to navigate, the class action lawsuit filed by The Rosen Law Firm (on behalf of purchasers of Seadrill shares during the period from July 10, 2014, through November 25, 2014) is the latest.
According to the class action lawsuit
The lawsuit alleges that Seadrill falsely told investors in July 2014 that it would maintain its dividend until at least the end of 2015. The statements stabilized its stock price and allowed it to retire several hundred million dollars of its debt," said Rosen Kamagra 100mg attorney Jonathan Horne. "But then, a mere four months later, Seadrill shocked the markets by eliminating the dividend, effective immediately. The markets had relied on Seadrill's statements that it would maintain the dividend, and Seadrill's market capitalization fell more than $2 billion in a Cialis single day."
In my opinion The lawsuit against Seadrill is not justified and this article discusses two reasons for this view.
Reason OneGoing back to the lawsuit excerpts, it alleges that Seadrill falsely told investors in July 2014 that it would maintain dividends until at least end of 2015.
My opinion is that Seadrill committed on dividends in July 2014 based on then existing fundamentals. The oil prices Steroids Injection Gone Wrong at that time justified the dividend continuity. This is the most critical point from a timeline perspective as WTI oil was trading at $105 per barrel towards the end of July 2014.
The implication is that Seadrill's decision to continue dividends through 2015 was based on oil prices at that time unless it is proved that Seadrill's management knew that oil would slump below $70 over the next few months.
(click to enlarge)
As the chart below shows, the breakeven for deepwater and UDW producers is relatively high and at $105 per barrel, companies would have still found it feasible to continue drilling.
(click to enlarge)
However, the scenario changed drastically and with slump in oil prices, the fundamentals for the offshore industry worsened.
I believe that the suspension in Methandienone Msds dividend was a difficult, but necessary decision that the management had to make.
Reason TwoAnother important point to mention here is that John Fredriksen boosted his stake in Seadrill on September 22, 2014 by buying 2 million shares. At that time, Seadrill was trading at $28.38.
If the company's intention was to cut dividends, John Fredriksen would not have considered buying 2 million shares at those levels when a stock slide was "Anadrol 50" imminent whenever dividends were suspended.
It is clear that the decision was more spontaneous and driven by sudden slump in oil prices. I must mention and emphasize here that Seadrill used significant leverage for growth when the offshore drilling markets were at the peak.
Leverage, at that time, created shareholder value through incremental cash flows. With the sudden decline in offshore markets, leverage was bound to impact the company's fundamentals. Further, as mentioned earlier, it is the right action to show financial prudence Acheter Viagra Bruxelles during difficult times.
I am therefore of the opinion that the company's survival strategy is in the right direction and it might not be appropriate to blame the company for the circumstances. Especially, when the company's guidance for dividends came at a time when oil prices were still at higher levels.
I am still of the view that investors need to stay in the sidelines when it comes to exposure to Seadrill. It remains to be seen how the company manages to reduce debt, rebuild investor confidence and sustain in challenging times. However, I am certainly not of the opinion that Seadrill deliberately cheated investors.