SDRL - thoughts?

[hendi_alex]

There is a fresh downgrade from CS, but recently Societe Generale gave a modest upgrade. Given the mixed signals and recent negative press related to both SDRL and the entire sector, how do you feel about SDRL? Does the stock represent what could be viewed as a long term position, or should the SDRL longs be ready to exit in anticipation of slower activity and continued soft day rates?

I'm long with a small position in my long term income account. My sentiment is to continue patient accumulation in small increments. But soft contract prices coupled with concern over excess leverage and high borrowing needs has caused my conviction to become weaker than it was six months ago.