Seadrill at Mercy of Day Traders as Biggest Funds Dump Stock
- Stock trading at option value, no big funds buying: Clarksons
- Investors’ willingness to hope is ‘astonishing’: Canaccord
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Seadrill Ltd., once the crown jewel of billionaire John Fredriksen’s business empire, is now at the mercy of short-term speculators as the biggest funds avoid the offshore driller amid a struggle to avoid bankruptcy.
“It’s trading at option value and day traders are the ones pushing the price up and down,” Anders Bergland, an analyst at Clarksons Platou Securities AS, said after the company on Tuesday again warned shareholders and bond investors they faced steep losses in any restructuring deal. “There are no funds buying this right now, it’s trading.”