Is Seadrill Limited's Sale to PEMEX Enough to Ease Investor Concerns?
Based on the recent slump in Seadrill's stock price, investors might be worried about losing the company's better than 10% dividend yield. If you look across the entire rig company space, though, Seadrill is not the only one having this issue. Its three major competitors -- Ensco , Transocean , and Diamond Offshore -- have all suffered major drops in share price as well.
Even thoguh there may be some worries that the rig market is oversupplied and Seadrill's balance sheet doesn't look the prettiest among its competitors, investors who are jumping ship may be interpreting the rig market. Tune into the video below to find out why Seadrill is in a better position than competitors like Diamond of Transocrean during an oversupplied market and why its recent contract with PEMEX is an indication of Seadrills strength.
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The article Is Seadrill Limited's Sale to PEMEX Enough to Ease Investor Concerns? originally appeared on Fool.com.Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google+, or on Twitter, @TylerCroweFool. The Motley Fool recommends Seadrill. The Motley Fool owns shares of Seadrill and Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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