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TheDumbMoney (75.13)

Sold Transocean

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September 05, 2012 – Comments (0) | RELATED TICKERS: RIG

I know it's a downday, but wth, I'm just not feeling Transocean anymore.  I made back some loot by averaging down at $39 ish. 

I sold 25 shares at $46.76/share ($4.95 commission), and sold 6 shares (in another account) at $46.75/share ($6.96 commission including SEC fee).   Should have done this awhile ago, see my May 2012 Seeking Alpha post, here, for more explanation:  http://seekingalpha.com/article/620021-transocean-has-a-major-accounting-problem-and-many-others

Basically, my thesis is blown here, I think.  I bought shares on three occasions, the highest in the low seventies, the lowest below $40.  I may turn out to be wrong to sell, but I see no reason to hold a loser, and the increase in shale oil and gas drilling onshore negates a lot of the long-term growth proposition here, for a company that is otherwise a pretty high-risk, low-ROA business. 

This sale also allows me to consolidate my portfolio to stocks I feel more strongly about, and reduce my beta.

As I always note, all stocks in this Fool profile are stocks I own.  They are the only individual stocks I own.  Purchase dates and sale dates are located in the comments to each position.  When I sell out completely I close it in CAPS.  My CAPS score here does not reflect my actual investment results because, for example, it can only reflect the price of one purchase, my first one for the stock.  (For example, for this reason my actual RIG results are not nearly as bad as that CAPS score would indicate.) 

For a profile of mine where I am actually trying to win at CAPS, rather than document my actual portfolio, see TheDumbMoney2. 

You can also follow me on Twitter here.

Thanks.

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