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Author: BrewCrewFool Big red star, 1000 posts Old School Fool Ticker Guide CAPS All Star Mission Olympia 2 SC1 Red SN Explorer 1 Mission Team Member Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1153  
Subject: Re: Stock is getting hammered since the rig expl Date: 4/30/2010 8:01 AM
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Hey Doc,

I'm in the same boat as you... I first bought shares in 2006/2007 and have been riding the roller coaster ever since. However, I'm actually considering adding a few shares if the stock dips much further.

As I see it, a 15% ($4 billion and counting) reduction in the company's market cap is an overreaction. Yes, this disaster will cost the company a bunch of money... wouldn't surprise me at all to see the final tally in the hundreds of millions. However, I think of that as a one time event, but nothing more. There will likely be added safeguards and/or regulation after this event for all drillers, but I still think that the long term investing thesis is still in place... RIG has the dominant position in an industry that will only continue to grow over time as oil becomes more expensive and in shorter supply on land. If this were a small player like ATW, I'd be the first rat off the rig!

In the meantime, RIG will continue to be profitable and generate a ton of cash. The special dividend that is being paid this year is going to have a higher yield now, which just means more shares reinvested for me!

Brian
Long RIG (and BP too... doh!)
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