Transocean Prepped for Upward Trend
Transocean has been on a downward trend for the last couple months. However, if you look at the charts today, it looks like they are headed back to an upward trend. This is good news, and would be a great time to buy. Jim Van Meerten explains why RIG can be a good investment, and how they are going to keep this upward movement.
Wall Street brokerage analysts are predicting a bad year but a turn around shortly.Sales are projected to decrease by 1.60% this year but turn around and increase by 11.70% next year.This is a capital intensive company with large fixed costs so earnings are expected to decrease by 39.80% this year and increase by a robust 65.00% next year and level off by increases of 3.00% annually for the next five years.Most of the turnaround is because many rigs were taken off line after the BP (BP) spill but are being all brought back and all should be in operation by the end of the year.Analysts predict that RIG will not be held responsible for the majority of the BP spill and between insurance claims and reserves will not have a significant impact on future earnings.Given all these assumptions brokerage analysts presently have 13 strong buy, 16 buy, 14 hold and only one under perform recommendation published."
Find additional research here: http://turnkeyoil.com/2011/09/01/transocean-prepped-for-upward-trend/: