Rachel JohnsonParticipantFebruary 11, 2020 at 1:29 PMPost count: 1
I’m wondering if you have any recent insight for Diamond Offshore ability to turnaround or if they may be headed for bankruptcy? Since another old position I was also holding recently went bankrupt (old CBI turned MDR), and became completely worthless, I’d rather exit before that point if DO is truly headed there as well. I’m concerned with their high debt they’ll not be able to ride it out much longer and that they may go bankrupt as well. This last year it has continually taken a nosedive. Do you have any insight on what may be ahead for them? Thanks!Sean HymanModeratorFebruary 11, 2020 at 1:54 PMPost count: 2794
Yes, all insights on all former positions were updated here: https://logicalinvestor.net/members-only/updated-target-resistance-levels-for-former-uwr-ap-portfolio-positions/
Offshore oil drillers need higher oil prices to prosper like they should. The good news? We’re done with oil’s downtrend as of early-2016. The tougher news is that more patience will be needed for oil to go into wave 3’s advance. Here are two likely paths for that.
OPEC is trying to influence the higher outcome than the lower yellow arrow outcome. However, Russia not having that same desire right now to cut oil production more could potentially cause the lower yellow arrowed area to unfold. No one knows ahead of time which will happen. But offshore drillers won’t likely rally higher like they need to until wave 3 is well underway.
Check out that video above and our other conversations about DO by using the search box at the top of these forum pages and you’ll catch up on all of our conversations we’ve had around DO and oil. Hope that helps.
Attachments:You must be logged in to view attached files.Sean HymanModeratorFebruary 11, 2020 at 2:30 PMPost count: 2794
So while we do know that DO is fundamentally weak right now, IF oil goes into wave 3 like I believe that it will…then those fundamentals start to slowly improve. Right now, we’re likely nearer to the end of wave C, which is one of the most pessimistic times for the masses concerning the stock.
So how much could the stock go down? Under $4 if it went belly up. But how much could it gain if oil goes into wave 3? Many fold what the price of the stock is right now. In the end, it’s your decision.
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