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Joined: Sep 2012
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Campfire Regular
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OP
Campfire Regular
Joined: Sep 2012
Posts: 894 |
Anybody familiar with this company. Been watching their stock for the past couple of months along with several others in the oil industry and saw where they filed for bankruptcy. Stock was in the mid to low 20's just a couple of years ago and last I saw it was around 30 cents.
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Joined: Apr 2011
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Campfire Savant
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Campfire Savant
Joined: Apr 2011
Posts: 152,632 Likes: 52 |
Wifey in that business. She says they filed for bankruptcy this AM
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
Most of the independent drilling companies that are left in the business pay their matching 401k contributions in company stocks instead of cash. Employees can’t sell or trade it until retirement or quitting the company.
I got this from a friend who consults with drilling operations.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
Like in the 80s and early 90s, there’s gonna be considerable consolidation within the drilling industry. They’ll have to for survival.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Nov 2011
Posts: 31,250 Likes: 12
Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 31,250 Likes: 12 |
Anybody familiar with this company. Been watching their stock for the past couple of months along with several others in the oil industry and saw where they filed for bankruptcy. Stock was in the mid to low 20's just a couple of years ago and last I saw it was around 30 cents. Since they've declared bankruptcy, that's 30 cents too much. Typically the stock is cancelled and existing shareholders get nothing, and the bond holders become the new owners. If anyone here holds this stock, and you are offered some kind of a rights or warrant offering in exchange for your existing shares which requires a contribution of fresh capital don't take it. I've never seen one work out for the warrant buyers.
Last edited by antelope_sniper; 04/27/20.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Nov 2003
Posts: 28,411
Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
Anybody familiar with this company. Been watching their stock for the past couple of months along with several others in the oil industry and saw where they filed for bankruptcy. Stock was in the mid to low 20's just a couple of years ago and last I saw it was around 30 cents. Since they've declared bankruptcy, that's 30 cents too much. Typically the stock is cancelled and existing shareholders get nothing, and the bond holders become the new owners. If anyone here holds this stock, and you are offered some kind of a rights or warrant offering in exchange for your existing shares which requires a contribution of fresh capital don't take it. I've never seen one work out for the warrant buyers. Isn’t that pending the form of bankruptcy they’re taking and what any reorganization plan might hold, if any ? Their physical assets would seem to be large ones.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Sep 2013
Posts: 18,237 Likes: 41
Campfire Ranger
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Campfire Ranger
Joined: Sep 2013
Posts: 18,237 Likes: 41 |
https://www.wsj.com/articles/diamon...8?mod=searchresults&page=1&pos=2Diamond Offshore listed assets of $5.8 billion and debts of $2.6 billion in its chapter 11 petition. The company's debt load includes some $2 billion to bondholders. That debt had been trading at deeply distressed levels, between 12 cents and 13 cents on the dollar.
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Joined: Nov 2003
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Campfire Ranger
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Campfire Ranger
Joined: Nov 2003
Posts: 28,411 |
That probably describes many independent drillers out there right now. Living on the edge.
The degree of my privacy is no business of yours.
What we've learned from history is that we haven't learned from it.
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Joined: Aug 2014
Posts: 5,071 Likes: 11
Campfire Tracker
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Campfire Tracker
Joined: Aug 2014
Posts: 5,071 Likes: 11 |
I have spent some time on a Diamond rig when they were drilling for us. Seemed like a good company.
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Joined: Nov 2011
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Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2011
Posts: 31,250 Likes: 12 |
Balance sheet value of assets is seldom close to market value. It they really had twice the assets as debt, the bonds wouldn't be at such a deep discount. The stock at 30 cents tells you how much equity the markets believe really remains.
You didn't use logic or reason to get into this opinion, I cannot use logic or reason to get you out of it.
You cannot over estimate the unimportance of nearly everything. John Maxwell
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Joined: Nov 2010
Posts: 19,101 Likes: 4
Campfire Ranger
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Campfire Ranger
Joined: Nov 2010
Posts: 19,101 Likes: 4 |
no experience with Diamond.
Years back worked for Rowan, which is now Valaris.
They'll be the next to file.
Rowan had the drilling industry by the balls. Rowan, ERA choppers, Letourneau, Land Rigs. Yards in Sabine and Fourchon. Several big anchor handling ships. Tug boats. Fleet of paid for rigs. Lewco pumps and top drives
Companies had to jump in the deepwater game.
Ultra Deepwater Drill ships aren't cheap.
Dave
�The man who complains about the way the ball bounces is likely to be the one who dropped it.� Lou Holtz
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Joined: Dec 2019
Posts: 17,618 Likes: 48
Campfire Ranger
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Campfire Ranger
Joined: Dec 2019
Posts: 17,618 Likes: 48 |
There were abit of a media darling..
11 or 13?
Makes a bug difference.
-OMotS
"If memory serves fails me..."
Quote: ( unnamed) "been prtty deep in the cooler todaay "
Television and radio are most effective when people question little and think even less.
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Joined: Nov 2010
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Campfire Ranger
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Campfire Ranger
Joined: Nov 2010
Posts: 19,101 Likes: 4 |
Dave
�The man who complains about the way the ball bounces is likely to be the one who dropped it.� Lou Holtz
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Joined: Sep 2013
Posts: 18,237 Likes: 41
Campfire Ranger
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Campfire Ranger
Joined: Sep 2013
Posts: 18,237 Likes: 41 |
Balance sheet value of assets is seldom close to market value. It they really had twice the assets as debt, the bonds wouldn't be at such a deep discount. The stock at 30 cents tells you how much equity the markets believe really remains. No disagreement. Posted it in response to an earlier question about which reorganization - which I see has come up again.
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