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$122.27 1.28 (1.06%)
9/5/2008 4:00 PM

Transocean, Inc. (RIG)

CAPS Rating:
*****

The Company is an international provider of offshore contract drilling services for oil and gas wells. Its primary business is to contract the drilling rigs, related equipment and work crews primarily on a dayrate basis to drill oil and gas wells.

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Avatar darkflame (98.86) Submitted: 7/03/07 9:29 AM : Outperform Start Price: $102.85 RIG Score: 37.76

Drilling services costing 9 times future earnings ? muahahaha... outperform. Easy money, easy CAPS-points.

ps: Really. Outperform. I mean it
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Transocean, Inc. provides offshore contract drilling services for oil and gas wells. It contracts drilling rigs, related equipment, and work crews primarily on dayrate basis to drill oil and gas wells with a focus on deepwater and harsh environment drilling services. As of February 2, 2007, the company owned and operated 82 mobile offshore and barge drilling units, including 33 high-specification semisubmersibles and drillships, 20 floaters, 25 jackup rigs, and 4 other rigs. The company also provides other integrated services. Transocean primarily operates in the Far East, India, U.S. Gulf of Mexico, United Kingdom, Nigeria, the Mediterranean and Middle East, Brazil, Norway, other West African countries, Australia, Canada, the Caspian Sea, and Venezuela. The company was founded in 1953 and is based in Houston, Texas.

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Avatar darkflame (98.86) Submitted: 10/17/07 10:08 AM

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Some part of an article I found. Steven Leeb is a smart guy, I've read his books.

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Steven Leeb, president of Leeb Capital Management, recommends buying shares of Transocean.

How do you play oil's recent run near $90.

Transocean (RIG), a Houston-based oil and gas driller with a market capitalization of $33.3 billion, is in the process of merging with former rival GlobalSantaFe (GSF).

"By year end, RIG will complete its merger with GSF and become, by a wide margin, the dominant deep-water driller in the world," says Leeb. "Deep water is arguably the most fruitful area for finding ever harder to find reserves."

Leeb notes that the merger will be accretive to earnings and leave Transocean with a forward (2008) price-earnings ratio of about 9, close to a historical low.

"Moreover, because the company's services are contracted out past 2010, strong profit growth is also visible past the end of the decade," says Leeb. "The risk is a protracted period in which oil trades below $55, unlikely unless there is a severe and prolonged worldwide recession."

Analysts forecast that Transocean will grow earnings by 42.5% at an annualized pace over the next five years, giving the driller a price-to-earnings-growth ratio that even Benjamin Graham could love: 0.34.

Transocean will report earnings for the three months ended Sept. 30, 2007, on the morning of Oct. 31. The consensus forecast is for earnings per share of $2.06 on revenue of $1.51 billion.

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Avatar avalon02 (97.87) Submitted: 11/13/07 8:37 PM

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I agree with you about RIG, but there's a very dark cloud on the horizon that will surely rain on this RIG parade: Congress is blowing the dust off the old Law of the Sea Treaty (LOST) and actually might pass this thing. It will place us under the jurisdiction of the UN regarding activities of all kinds on the high seas, limiting geological explorations and the potential for gains of any kind; everything would get funneled through the UN. Believe me, this thing is serious regarding the sovereignty of the USA. Just look into it..

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