{"id":39425,"date":"2014-11-26T10:58:37","date_gmt":"2014-11-26T15:58:37","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=39425"},"modified":"2023-06-08T10:15:02","modified_gmt":"2023-06-08T14:15:02","slug":"how-a-stock-can-trade-when-their-dividend-is-cut-seadrill","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill","title":{"rendered":"The Impact of Dividend Cuts on Stock Trading (Seadrill Case Study)"},"content":{"rendered":"<p>In the premarket Seadrill, an offshore driller, announced it was suspending its dividend as this headlines shows:<br \/>\n<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-39427\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/sdrlnews-e1417017380595.png\" alt=\"sdrlnews\" width=\"600\" height=\"68\" \/><\/p>\n<p>This is news of changing fundamentals in a stock that gets my attention.\u00a0 When a company suspends its dividend many shareholders HAVE to sell as that offering no longer fits their investment strategy.\u00a0 Further the suspension of a dividend signals financial weakness in a company as they now have a weaker cash position.\u00a0 In short, there will be many new sellers in a company that is now newly weaker than yesterday.<\/p>\n<p>I love to trade changing fundamentals trades.\u00a0 Even after SDRL gapped down on this news there was and is opportunity.\u00a0 Here is a quick look at the intraday chart as of 11AMish.\u00a0 And this stock is a candidate for a low of day finish given the news.<\/p>\n<p>This is a news pattern to consider adding to your trading.<\/p>\n<p><strong>Seadrill Intrday 1minute chat:<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-39431\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL1.png\" alt=\"SDRL\" width=\"498\" height=\"341\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL1.png 887w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL1-300x205.png 300w\" sizes=\"auto, (max-width: 498px) 100vw, 498px\" \/><\/p>\n<p>*short $SDRL<br \/>\nMike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of<em> One Good Trade<\/em> and <em>The PlayBook<\/em>. He welcomes your trading questions at mbellafiore@smbcap.com.<\/p>\n<p><a href=\"https:\/\/www.smbtraining.com\/blog\/daily-vid\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-39307\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/10daybanner.png\" alt=\"10daybanner\" width=\"586\" height=\"290\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/10daybanner.png 586w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/10daybanner-300x148.png 300w\" sizes=\"auto, (max-width: 586px) 100vw, 586px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the premarket Seadrill, an offshore driller, announced it was suspending its dividend as this headlines shows: This is news of changing fundamentals in a stock that gets my attention.\u00a0 When a company suspends its dividend many shareholders HAVE to sell as that offering no longer fits their investment strategy.\u00a0 Further the suspension of a dividend signals financial weakness in &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":39426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-39425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Stocks Trade When Dividends are Cut: Seadrill | SMB Training<\/title>\n<meta name=\"description\" content=\"Find out how a stock can trade when their dividend is cut, using Seadrill as an example. SMB Training explores the impact of dividends on stocks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Stocks Trade When Dividends are Cut: Seadrill | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Find out how a stock can trade when their dividend is cut, using Seadrill as an example. SMB Training explores the impact of dividends on stocks.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2014-11-26T15:58:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-08T14:15:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL.png\" \/>\n\t<meta property=\"og:image:width\" content=\"885\" \/>\n\t<meta property=\"og:image:height\" content=\"965\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"The Impact of Dividend Cuts on Stock Trading (Seadrill Case Study)\",\"datePublished\":\"2014-11-26T15:58:37+00:00\",\"dateModified\":\"2023-06-08T14:15:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\"},\"wordCount\":204,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL.png\",\"articleSection\":[\"General Comments\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill\",\"name\":\"How Stocks Trade When Dividends are Cut: Seadrill | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/how-a-stock-can-trade-when-their-dividend-is-cut-seadrill#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2014\/11\/SDRL.png\",\"datePublished\":\"2014-11-26T15:58:37+00:00\",\"dateModified\":\"2023-06-08T14:15:02+00:00\",\"description\":\"Find out how a stock can trade when their dividend is cut, using Seadrill as an example. 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