Tuesday, March 1, 2016

Recent Sell - Ensco plc (ESV)

On 25 February 2016 I Sold 155 shares of ESV at $7.63 per share minus commission.

24 February Ensco released its 4th quarter and full-year 2015 results. At the same time ESV announce to reduce its quarterly dividend from $0.15 to $0.01. This was the second time that the ESV announced dividend reduction in the last year and a half. Maybe I would have enough patience to wait for better times, if the dividend payment would only be suspended, but that 1 cent was mainly a joke!

ESV Price chart:

Summary of transactions:

  • 2014-07-24: Bought 100 shares of ESV at €39.49 per share:    € 3,949.61
  • 2014-09-22: Cash Dividend:                                                            € 43.58
  • 2014-11-28: Bought 55 shares of ESV at €27.13 per share:      € 1,492.08
  • 2014-12-22: Cash Dividend:                                                            € 70.82
  • 2015-03-23: Cash Dividend:                                                            € 15.89
  • 2015-06-19: Cash Dividend:                                                            € 15.27
  • 2015-09-21: Cash Dividend:                                                            € 15.42
  • 2015-12-21: Cash Dividend:                                                            € 15.89
  • 2016-02-25: Sold 155 shares of ESV at €6.80 per share:          € 1,053.68

                                                                                        Capital loss: € 4,387.83

                                                                                              Net loss: € 4,211.54 

Dividend income reported after the deduction of taxes.

Afterwards it is easy to say that the first purchase I made really bad time, just when the decline in crude oil prices began to accelerate.  And instead of that, I bought more later, I should have been give up the previously acquired, and not to grab the falling knife. Also, it would have been wise to sell all the shares after the first dividend cut declaration came and not to believe that the situation and the price of crude oil will recover quickly. 

This sale 155 shares of ESV will reduce € 69.29 of my expected annual net dividend income.

Ensco plc was one of my riskier holdings, and now I'll wait and see which company is the next, which I will clean out of my portfolio.

Click here to see my portfolio. 

Thanks for stopping by!


  1. Nobody knew what the oil glut would look like. I also expected it to be just a 6 months or so drop and then recovery. Instead we are in a mess without an end in horizon. Surprisingly the stock started going up after the initial sell off so i decided to actually initiate a put selling against ESV today. Hopefully I am not doing anything wrong!

    Well, the same thing happened to me too but with LGCY when I bought at 30 or something per share. I was lucky, I sold when it was still high in one account, but I was buying in other accounts. And I decided to weather the holdings and keep it. It makes no sense selling anyway as the stock sells for 0.6 per share so I would get back some 90 dollars only and lose 98% of my invested capital in this stock. At this price I decided to sit on it and wait it out.

  2. I feel you. Did the same mistake with Ensco. Now still sitting on the losses.

  3. Hindsight is always 20/20. On the bright side, you have learned lessons that will be invaluable to you as an investor for decades to come.