There's a lot to like about Seadrill (NYSE: SDRL ) ; but, in this video, Jim Mueller gives us three things to watch for as warnings signs to sell.� First, Seadrill is expanding its rig fleet rapidly and incurring significant debt doing so. Second, utilization rates need to at least stay level, and preferably increase. If rates start to decrease, this could be trouble for the company. Third, Seadrill is ordering new rigs without a guarantee that they will be used once the rigs are built. If oil prices drop or demand for deep rigs declines, Seadrill could be in for a rough time, and investors should seriously consider selling.
If you're an energy investor looking for exciting opportunities, then you should look into one of the more intriguing plays in the space: Seadrill. To learn more about the strengths and weaknesses of this company, as well as what to expect from Seadrill going forward, be sure to check out this�brand-new premium report�put together by one of our top Stock Advisor analysts. Click here to�get started.
No comments:
Post a Comment