by Ian Harvey
IMPORTANT NOTE: There is no stop-loss or pre-determined sell price recommended – this is left to the discretion of the individual trader.
Wednesday, November 25, 2015
Ocean Rig UDW Inc (NASDAQ:ORIG) Calls
**OPTION TRADE: Buy the ORIG Dec 2015 2.000 call (ORIG151218C00002000) at approximately $0.15. Sell price is left to your own judgment.
Ocean Rig UDW Inc (NASDAQ: ORIG), a Marshall Islands-registered international offshore drilling contractor, is next slated to report quarterly results today where the Street is anticipating earnings per share of $0.37. Most recently the firm reported earnings of $0.54 for the period ending on 2015-06-30.
According to Zacks, “Ocean Rig UDW Inc. is engaged in providing offshore drilling services to oil and gas exploration, development and production drilling industry. The Company specializes in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. Ocean Rig UDW Inc., formerly known as Primelead Shareholders Inc., is based in Sandnes, Norway.”
Many analysts have commented on the company rating. As many as 6 brokerage firms have rated Ocean Rig UDW Inc. at 2.17, with 4 rating the stock as a buy or better.
Equity Analysts at the Brokerage Firm, Deutsche Bank, maintains their rating on the shares of Ocean Rig UDW Inc. Deutsche Bank has a Buy rating on the shares. As per the latest research report, the brokerage house raises the price target to $13 per share from a prior target of $12. The rating by the firm was issued on September 28, 2015.
Wednesday, November 25, 2015
Seadrill Partners LLC (NYSE:SDLP) Calls
**OPTION TRADE: Buy the SDLP Dec 2015 10.000 call (SDLP151218C00010000) at approximately $0.50. Sell price is left to your own judgment.
Seadrill Partners LLC (NYSE: SDLP), owns, operates and acquires offshore drilling rigs, posted its quarterly earnings data on Tuesday. The company reported $0.98 EPS for the quarter, beating the consensus estimate of $0.78 by $0.20.
Seadrill Partners traded down 0.31% during trading on Tuesday, reaching $9.72. The company’s stock had a trading volume of 342,699 shares. Seadrill Partners has a 52 week low of $7.94 and a 52 week high of $21.24. The company has a 50 day moving average price of $10.78 and a 200-day moving average price of $11.80. The company has a market capitalization of $892.50 million and a PE ratio of 4.23.
This energy stock has beaten estimates, but most importantly, the technology advanced drilling units of the partnership are under contracts for the long term with leading energy firms like Chevron Corporation (CVX), Exxon Mobil Corporation (XOM) and BP plc (BP).
Although the business environment was not favorable for the drilling players following low commodity prices, the third quarter looks bright for Seadrill Partners which has an Earnings ESP of +12.00%.