I think SDRL could easily trade into the single digits and if oil continues lower for any extended period of time could be low single digits by the time its all said and done. They just missed earnings by 50% and management just gave a huge hint at where they see the market. They didn't just trim their dividend, they completely eliminated it.
If you are going to play the downturn in oil, do it in financially strong companies that could withstand 6-12 months of lower prices. CVX, XOM, OXY, COP, EOG are some names I hold and/or would be comfortable buying.
If you are going to play the downturn in oil, do it in financially strong companies that could withstand 6-12 months of lower prices. CVX, XOM, OXY, COP, EOG are some names I hold and/or would be comfortable buying.