Seadrill Limited (SDRLF) Stock Breaks Out On Massive Volume: How Far Can it Go?

Seadrill Limited (OTCMKTS:SDRLF) gained 48% without the release of any news. The company and the Issuer recently announced that it was engaged in restructuring negotiations with specific noteholders pertaining to the 12% senior secured notes expected 2025. There is good progress being made.

 The discussions center around SeaMex Ltd, a joint venture formed with a Fintech Holdings Limited-controlled investment fund in 2014. So far, the Issue has agreed in principle to the restructuring plan’s main terms in connection to SeaMex with majority Noteholders. In addition, the agreement provides for SeaMex’s secured bank loan refinancing.

The proposal includes deleveraging the joint venture’s balance sheet by equitizing all or a lathe part of them around $454 million subordinated debt the issuer controls. It also entails injecting short-term liquidity into the joint venture to bridge towards refinancing its senior bank loan as part of the restructuring of the joint venture’s balance sheet.

Financial creditors are supportive of SeaMex. So, in the coming weeks, SDRLF is a stock to watch.

Market Reaction:

On Tuesday, SDRLF stock surged 48.31% at $0.6600 with more than 1.97 million shares, compared to its average volume of 158K shares. The stock had moved within a range of $0.5500 – 0.6949 after opening the trade at $0.5520. Over the past 52-week, the stock has been trading within a range of $0.1600 – 0.6949.

Another big gainer of 2021 is Allied Energy (OTCMKTS:AGYP). The stock has soared 1100% so far in 2021 and picked up further momentum over the past couple of weeks. After four months of consolidation, AGYP stock has gained over 130% since mid-June and now trading 15% away from its 52-week high of $0.71. . A recent string of Twitter updates shows Allied Energy is making impressive progress at their Green and Gilmer leases located in Texas.

AGYP stock is trading above 50-day and 200-day moving average, signaling a solid breakout. So there could be another new breakout once the stock crosses a new high. Keep an eye on AGYP stock.

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