# transocean



## newbie (Dec 12, 2009)

any thoughts on this one
below 09 lows already and looking for a bottom.
maybe 30 bux?
just curious as to what the board "experts" think.
the chart is for a better word to say horrid
was worth 60 bux in oct, not too long ago.
i wonder if anyone here had the balls to buy into this .


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## KaeJS (Sep 28, 2010)

Will be a nice play, more than likely, if you've got the patience and risk tolerance to wait it all out.

Only question is where is the bottom?

Company's profits are suffering, reported a -0.19 EPS last quarter. Dividend is super high at a 8.2% yield.

My reason for worry is that they just introduced an extremely high dividend at a tough time in the market, when the company is doing poorly.

Sounds like the board is trying to keep the stock from dying, which usually means stay away? That's how I see it.

Could be worth a small position at any hint of upside.

From Oct 4 to Oct 28, the stock went from $45 to $60. I'd take that. 
Need to look for/catch another opportunity like this.


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## Toronto.gal (Jan 8, 2010)

newbie said:


> i wonder if anyone here had the balls to buy into this.


Yes, I do.  [but not yet]

I did also when I bought BP [not at the bottom unfortunately, but in the $30's or at 1/2 price from it's 52 week high in 2010]. 

Has been on my watch-list; waiting for $30 or less.

How many stocks have been battered in 2011? So current prices are not surprising.


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## newbie (Dec 12, 2009)

Toronto.gal said:


> Yes, I do.  [but not yet]
> 
> I did also when I bought BP [not at the bottom unfortunately, but in the $30's or at 1/2 price from it's 52 week high in 2010].
> 
> ...


looking around and apparently 30 bux might seem a little too low but , ya never know right


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## Ethan (Aug 8, 2010)

I prefer Diamond Offshore Drilling for an offshore driller.

Trailing PE - 7.56
Dividend yield - 6.33% (0.9% if you don't include the "special" dividends)
Payout ratio - 47% (6.71% if you don't include the "special" dividends)

Analysts don't like DO because it has the oldest fleet among the offshore drillers. I like DO because they consistently crank out large profits with fat dividends ($0.125 regular dividend, $0.75 special dividend).

Similar to other posters, I am scared of RIG because they are a money loser with a high dividend.


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## newbie (Dec 12, 2009)

Ethan said:


> I prefer Diamond Offshore Drilling for an offshore driller.
> 
> Trailing PE - 7.56
> Dividend yield - 6.33% (0.9% if you don't include the "special" dividends)
> ...


OD is extremely undervalued and u r absolutely right.
the only problem we r facing with impressive companies like OD , PBN , PWT ...and the list goes on is the derisking factor.
in o8 HSE was trading above todays value with oil at 40 bux .
oil equities decoupled from oil price.
look at hse price today with oil at 100 bux.
that tells the whole pic with oil equities in general, they r extremely undervalued but very risky for short term imo.
saw some of ur purchases and they r very interesting.

of topic when would u see gold up only 7 bux with the news that came out from IRAN?
that also shows how gold does not react like before to this kind of news which only suggests me more short covering.


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## KaeJS (Sep 28, 2010)

Up quite a bit in premarket.


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## Toronto.gal (Jan 8, 2010)

Yes, RIG was up to $40, or 4% at 9:32; back to $39.50 [good for trading, not for buying yet].


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## newbie (Dec 12, 2009)

Toronto.gal said:


> Yes, RIG was up to $40, or 4% at 9:32; back to $39.50 [good for trading, not for buying yet].


very good for trading


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## ddkay (Nov 20, 2010)

This little gem is marching its way to $51, 30% gain in about a month.


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## PMREdmonton (Apr 6, 2009)

I bought in at 40 but traded out at 46 when markets got volatile. I probably should have hung on but got spooked. I've only been trading a short period of time and know what to do in a down market but haven't really gotten used to stocks going up without rapidly changing course and going back down. 

I think it still has legs on a fundamental basis in a growing industry and should have excellent profitability as their rigs get back in the water. I still like Seadrill better as a company but RIG is more undervalued right now. I think it has been litigation risk and execution misfires that have held them back and pummeled down their valuation.


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## ddkay (Nov 20, 2010)

$59.03 - 54% ytd


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