We continue to recommend Seadrill (SDRL) in our sister publication, The Energy Strategist. As far as the CS note, this is very late in the game (after six months of decline) to downgrade from Outperform to Neutral, and to claim as uncontracted newbuilds that have not yet been built. Seadrill is nearly fully booked up through the end of 2015, and only if the current dropoff in demand lasts another 18 months would its dividend be in jeopardy. The share price seems to have already discounted this possibility, so I don’t see much near-term downside, and shareholders are getting a very nice yield to wait for market fundamentals to improve, as well they might.