Borr Drilling Story

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BORR -- USA Stock  

USD 0.43  0.01  2.38%

Borr Drilling is scheduled to announce its earnings today. The stock is currently experiencing a sell-off trend. As many millenniums are getting excited about energy space, it is only fair to sum up the feasibility of shorting Borr Drilling. We will discuss the reasons why it is still possible for the company to generate above-average margins given the latest economic outlook.
Published over three weeks ago
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Should you exit your Borr Drilling (NYSE:BORR) holdings?
Borr Drilling's average rating is Hold from 1 analysts. We provide trade advice to complement the prevailing expert consensus on Borr Drilling. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
What is the right price you would pay to acquire a share of Borr Drilling? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

Watch out for price decline

Please consider monitoring Borr Drilling on a daily bases if you are holding a position in it. Borr Drilling is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Borr Drilling stock to be traded above the $1 level to remain listed. If Borr Drilling stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Borr Drilling's Liquidity

Borr Drilling financial leverage refers to using borrowed capital as a funding source to finance Borr Drilling ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Borr Drilling financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Borr Drilling's total debt and its cash.

How Borr Drilling utilizes its cash?

To perform a cash flow analysis of Borr Drilling, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Borr Drilling is receiving and how much cash it distributes out in a given period. The Borr Drilling cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Borr Drilling Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Borr Drilling reported last year Net Cash Flow from Operations of (89 Million)

Is Borr Drilling a risky opportunity?

Let's check the volatility. Borr Drilling is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Borr Drilling (NYSE:BORR) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. buying a share of a Borr Drilling stock makes you a part-owner of that company.

Will Borr Drilling latest fall continue?

The coefficient of variation is down to -689.62 as of today. Borr Drilling exhibits very low volatility with skewness of 2.09 and kurtosis of 7.64. However, we advise investors to further study Borr Drilling technical indicators to make sure all market info is available and is reliable. Borr Drilling is a potential penny stock. Although Borr Drilling may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Borr Drilling. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Perspective on Borr Drilling

While other companies in the oil & gas drilling industry are either recovering or due for a correction, Borr Drilling may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 30th of September 2020, we believe that at this point, Borr Drilling is abnormally volatile with average chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. However, our concluding 30 days buy vs. sell advice on the enterprise is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Borr Drilling. Please refer to our Terms of Use for any information regarding our disclosure principles.

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