4/11/14: Spring Portfolio Cleaning

By Igor Greenwald • April 11, 2014

Portfolio Action Summary

  • Afren (LSE: AFR) removed from Aggressive Portfolio

  • Fuel Systems Solutions (Nasdaq: FSYS)  removed from Aggressive Portfolio

  • Mid-Con Energy Partners (Nasdaq: MCEP)  removed from Growth Portfolio

  • Tenaris (NYSE: TS)  removed from Aggressive Portfolio

  • GasLog (NYSE: GLOG)  position reduced by half in Aggressive Portfolio

  • Core Labs (NYSE: CLB) confirmed as Hold in Growth Portfolio

  • EQT Midstream (NYSE: EQM) buy limit raised to $70 in Conservative Portfolio

  • Western Gas Partners (NYSE: WES) buy limit raised to $64 in Conservative Portfolio

  • Helmerich & Payne (NYSE: HP) buy limit raised to $112 in Growth Portfolio

  • EOG Resources (NYSE: EOG) buy limit adjusted for split to $100 in Growth Portfolio  

For more information, see the April 11 issue of The Energy Strategist.

Stock Talk

Comments Guidelines
Charles Geckler

Charles Geckler

Is this a good time to take a position in Seadrill ?

Igor Greenwald

Igor Greenwald

Short answer is Yes.
I just answered a SeaDrill question over at MLP Profits, where a reader asked: “Can you comment on the recent discussion concerning the over build by SDRL of new rigs and a falling daily rig rate with yet no new contracts and the cut by Credit Suisse from outperform to neutral on SDRL?”
My reply:
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.

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