Post by
ninetiesgolfer on Dec 01, 2014 11:26am
Not cash poor?
According to Stockhouse, the PE ratio for SDRL is 2.4. Furthermore, it plans to buy-back 10% of its stck. It has also cancelled its dividend. I believe it has over $20 billion in furue contract revenue. Doesn't sound like the company is cash poor so I can't understand the significant drop in price.
Comment by
mnztr on Dec 05, 2014 11:38am
The question is, how losng can the Saudis depress the price of oil. If you do the math, at 66 they are losing about $120B/year. Last year they had a 15B budget surplus, but have just completed their massive rearmament spending. With their foreign reserves of around $800B they can depress the price of oil for about 8 years or if they double down, 4 years at $35 a bbl
Comment by
edmed on Dec 09, 2014 10:26pm
I think you will see the price of oil depressed until President ASSAD is removed from Syria. This IMHO is all about the Saudis wanting to put the boots to Iran and Russia , both of whom support ASSAD.