Diamond Offshore Drilling, Inc. (DO)

yuppp

It is simple to see - - The Officers and Directors are all selling their stock. They know something that I suspect is the stock will be going down the drain.

Conservative fiscal managementt, regular special dividends and oil&gas exploreation must increas in deepwaters where DO has an edge in fleet size to take advantage of the expected increase in exploration.

showing great growth compared to every one on thses tough times.under valued.consistent div pay.

Quasi-pair versus RIG.

drill baby drill

They have low debt levels. They pay a really attractive special dividend. Well run.

Is there such a thing as black diamonds? Oh yes! This gem of the crude type has kick butt profit margins, $675mil in cashola and rockin investment returns (ROE=39.7%). Only drawback is that they carry a little more debt than I would normally prefer, but it's not out of hand. A solid buy around $85.

wallstreetbean.com

EPS estimates were raised from $9.65 to $10.00 for 2009. Company has been a leader in returning earnings to shareholders above its stated dividend; in recent quarters it has authorized $1.875 per share above its stated dividend of 12.5 cents per share.

Deep oil drilling is where it's at!

I purchased DO stock today at $86.60 per share to begin a position in this company in my real time portfolio. I believe DO is the most undervalued stock that I currently follow. Using an estimate of earnings of $10.22 per share and a 5 year growth rate of 25% I come up with a PE ratio of 8.5 and a PEG ratio of .3. This is a cheap stock.

Although I believe the stock market as a whole is over extended and due for a decline which may be pretty severe I wanted to start a position in DO just in case. I will add to this later if the stock price declines in any significant way.

The return on DO stock for the last 5 years is about 450%. I will be happy if the return over the next 5 years is a double.

Since I am also concerned about increasing inflation in the future I want to hold a healthy mix of natural resource stocks and hard assets going forward. DO provides contract drilling services to the oil industry on a global basis and is involved in deepwater drilling which will become more important in the future. DO provides most of its services on a lease basis which in many cases is long term, therefore their income is more stable than the price of oil although their stock price tends to fluctuate with the price of oil which will have a major effect on their stock price. This stock and industry is not for those with a weak stomach although it is somewhat more stable than some of their piers.

I believe that the price of oil may fall again below $50 per barrel but in the long term I want to own oil companies since there is really only one way for oil to go ultimately.

Low PEG, high profit margin

http://www.fool.com/investing/general/2009/05/29/5-stocks-with-a-bright-future.aspx

nice deepwater drilling play... second to Transocean

Can't fight the wisdom of CAPS members, and particularly CAPS All Stars

Because of the background and the new wave for this type of company to be in the forefront.

love the dividends

oil play

Diamond Offshore is a great company, and offshore oil is poised to make a big run.