Barron's finds Transocean a bargain. http://seekingalpha.com/currents/post/694891?source=email_rt... I have been long on RIG like many FOOLS have been long NFLX for years. It has been hard to hold this during the drop but I am glad I did and ready to ride it back up. It will be nice to have that dividend back too.
I wouldn't hold my breath on a dividend...they've got some debt from the Aker acquisition to take care of first. My read of the below quote is that the divvy issue is off the table until 2014 and, realistically, I think 2015 is the most reasonable expectation.From the Q&A session on the latest conference call:<snip>Douglas Becker - Bank of America Merrill Lynch: Given some of the debt parameters, the cash balance parameters and just the liquidity, is it fair to say that a dividend proposal to the shareholders is unlikely in 2013?Steven L. Newman - President and CEO: Doug, we will continue to dialogue with the Board about the deployment of capital, but I'll tell you if you just do the simple math on what we expect our operating results to be next year and what that might translate into in terms of available cash flow and our ability to use that available cash flow to make progress towards the balance sheet objectives, I wouldn't completely rule it out, but I'll tell you we are really focused on the balance sheet objectives right now. We want to enhance the Company's investment-grade rating.</snip>Link (the quote begins on pg. 4 of the Q&A):http://www.morningstar.com/earnings/44842162-transocean-ltd-...That said, it looks like they're beginning to turn the corner on their operational issues and efficiencies. So for me those are the key areas to keep an eye on going forward. Once those stabilize and they get the debt under control we'll see the CHFs start flowing out of Zug again...but again, even if they start paying out again it will likely be around 1-1.5%...I think the share price appreciation is where it's at here. I've been lucky in that through some judicious buying and selling I've "beat" my average purchase price down into the mid-40s. And I'll try to keep getting it lower through the whims of the market...I think RIG is worth at least $70 a stub...
This is my first post on the RIG board (since the 1990's?) There was once a great following of friends of RIG at TMF. Well, RIG ($57) is finally headed north after the BP settlement and (maybe?) with the help of Mr. Icahn with his new dividend mandate, which I'm not so sure is a great idea, but then I'm not greedy.We'll be back to the 70's easily, though not immediately, with all the very profitable activity that lies ahead for this great company. RC Darcy, Foolish Duck, Casey et.al. would have enjoyed the ride.jz
Hi jz:Back into RIG-jig, you think? I'm not so sure. Last, I traded out of this stock was the end of 2007. Mind you, I never stopped following drillers. Today, for example, I think ATW and NE are much, much better bets, perhaps SDRL, too, ... but I only own NE.Cheers, ...C.
Casey,You always knew the good'uns. I agree about NE, It's my only holding in the space other than my new little RIG position, which is a spec...since they got hammered so bad and they are in Zug now, where the tax bite is under control.SDRL is one that we http://www.mpmaritime.com/seatrade.phpare close to since the management of the group are among our investors.But it isn't cheap for the moment. Anyway NE is a winner.best wishes,jz
Would any of the fools be able to comment on what is leading to Transocean (RIG) not gathering momentum inspite of stead increase in revenues and increase in the backlog revenues. These are some of the favourable news articles on RIG•Daewoo's (DWOTF.OB) securing of a $528M order for a drillship from Transocean (RIG) •The worldwide fleet of drillships has more than doubled to 92 over the past five years, and they will be joined by 76 others over the next four years, making them the fastest-growing offshore drilling segment.On Tuesday, October 15, Transocean (RIG) announced that it was awarded a five-year contract for the construction of a newbuild ultra-deepwater drillship by Chevron (CVX) that includes a shipyard delivery scheduled for Q2 2016. RIG says the new booking is expected to bring in $1.1B in revenue while the rig will cost ~$725M to build.•Global oil demand is expected to climb to 96.7M bbl/day by 2018, an average growth of 1.2%/year, a level industry officials such as Maersk's (AMKAF.PK, AMKBY.OB) Claus Hemmingsen say opens doors for more remote offshore developments.The current EPS estimate for Transocean stands at $5.3 for 2014. With a modest PE of 12, Transocean shares should be trading at $63. Currently trading at $45. Not to mention the dividend of $ 2.24 or 5% yield. http://seekingalpha.com/article/1748392-several-reasons-why-...May be we need Tom or David Gardner to bless this stock at their current round of stock advisor....Please put some focus or comment why my analysis doesn't hold true
You might find Jim's comments interesting here: http://boards.fool.com/rig-dividend-hike-31259926.aspx?sort=...Note that he has it as part of his Fool "Messed-Up Expectations" portfolio. He's happy about the dividend hike as well as the long term prospects.Rob
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