Quote:
Originally Posted by CharlieDontSurf
isn't this the same quandry Tidewater and Hos are going to be in soon?
You very well may be correct, but I can't say for sure with either Tidewater or HOS.
The whole key is the debt, and it's maturity schedules.
I strongly suspect that oil will be higher in the next few years....could be trouble with Iran, war, increased demand, who knows?
Also, think about this...at $50 a barrel, oil does not have to advance too much further for offshore to make sense. If oil goes a bit above $60 AND STAYS THERE, then offshore should start to come back to life.
The whole key is if a company can service their debt/maintenance capital spending for the next 2-3 years. If so, they are likely to do well at some time.
If they need to refinance soon, they are facing big time trouble.
I've heard Diamond Offshore is well positioned...but haven't spent any time researching them.
On a different note: RETAIL GOT CRUSHED TODAY! A lot of companies reporting weak sales.
Tailored Brands (TLRD) was down $7.53 (-32%) to $15.84 a share. Other retailers were down, but not nearly as much.
Abercrombie & Fitch (ANF) is near a multi-year low, Enterprise Value/EBITDA is at 2.59!!!!!!!
I anticipate that ALL names in retail are going to be under severe pressure in the upcoming year. The time to research and pick your names is NOW. Be ready to act when Mr. Market panics and sell everything retail related indiscriminately later in the year....