Another opp;ortunity, SDRL
I love sector/stock attacks by shorts. It creates opportunity. Last year you were given several.
First the AG sector with the Russian potash cartel breaking up. The potash stocks got crushed. Yet there was your buyin. POT at $28 now low $30.
Next was the attack on LINE and BBEP collaterally. Knocked LINE down to low 20s and BBEP under $15. There was your buyin. LINE now low $30s and BBEP over $20.
Then there was and still continues to be an attack on QCOR. It got knocked down to $50 a few times yet at mid $60s.
Now you have the attacks on oil rig stocks with a ridiculous analysis from Barclays' James West and Zachary Sadow. You can't treat all rig operators the same. They are not. SDRL concentrates on deepwater rigs and offers the BEST rigs. Integrateds have little choice but to drill deeper to replace reserves. These boobs at Barclays try to scare people into thinking SDRL will now drop to $11-16 all while paying a distribution of at least $4 for 2014. Really?
Here's your chance to play SDRL. Buy the stock, sell puts, buy calls.
Buy low sell high. Well you are seeing lows now so what do you do? Buy.