Transocean, Inc. (NYSE:RIG)

The only scary thing is the P/E, but I am feeling Foolish on this one. Oil is worth more than gold to me because it can actually be used for things other than looking good and if these guys are in charge of transporting it, then they are valuable in my book.

Demand for new oil drilling sites will be a deciding factor in this stocks outcome. The deep water drilling this company provides will be vital to the worlds oil drilling.

RIG will survire the Gulf oil spill. May take a small hit of $ 2-3B. But its too good of a buy. It has the rigs for deep water and the expertise to use them. This is where the market is going. I expect RIG to be at $ 100 share by end of year.

The market for deep water drilling is soaring given finite supplies of current oil. According to a recent WJ article Transocean's backlog of orders for its ships is not in months, but in years. The demand for its ships could lead to increased rates and more money for the company.They're also working in Norway where a huge oil discovery was made and that will help them as well.

RIG is SO undervalued right now. It is a few cents from a 52wk low right now. Past charts show hitting the support levels then springing back up again for about an 80%-100% price growth. Also, earnings just hit a low but are projected to be increasing. The price has been dropping for a while after missing earnings and it has way over adjusted. Their total assets have decreased quite a lot since the past year's 10k but the price has dropped way more than their assets. This company is simply way overcorrected by a few bad numbers and it has to spring back very shortly.

BP business settled, offshore gulf back drilling./Offshore west africa growing. brazil to come.

A good value at current price with limited downside & huge upside once they put Gulf spill (& now Brazil) behind them. I expect they will lag sector in ST, but eventually resume leadership with best breadth & depth in deep water arena.

Oversold.

Oil demand will increase as the world slowly emerges from recession. Eventually, oil prices will justify deep rig day rates, a situation for which Transocean is keenly aligned to benefit from. Not to mention, it is pumping out a 6% yield (although this will not last forever).

Warren Buffet once said buy a company an idiot could run, because eventually an idiot will run it. Well, as of now we have a bunch of idiots running this company.

For the Aker drilling acquisition, management (in its infinite wisdom) decided to pay twice the fair market value for this well with debt. THEN decided to refinance the debt by issuing stock at its 6 year lows. THEN gave us a 7% dividend. Why not skip the dividend and not dilute our shares? I’d appreciate that. I own this company in real life, and when I found out managements plan I wanted to throw my computer out the window.

I also doubled down on this stock.

I don’t really care where you see energy going in the next 30yrs. In the next 10 to 15yrs, you can bet your behind we will be using petroleum based products. And RIG is in the best position to capitalize off the offshore extraction side. They currently have 138 rigs, dominating their competition in size and technology. The only players that will matter in the next 10yrs are RIG and SDRL. No one else has the capital/manpower to build more rigs to compete with these companies in that time frame.

They are currently upgrading their rigs for a post Gulf of Mexico regulatory world, which has led to some downtime with their rigs. Not to take management off the hook, rig downtime in this company is a huge issue. This has also led to some costs associated with the upgrade.

Another threat is the gulf spill. No one can be 100% sure how that will end up so we must take that into consideration.

But looking past those issues, we have huge upside. This stock is currently trading at book value. That gives us a margin of safety when buying this stock. In fact, I think most of the downside has been factored in, and I’d be surprised if the price went lower then 37-38. If it did I’d buy more.

They are in such a good position to make a huge amount of profit in the coming years, and people have discounted this stock like its going to die.

This is an outstanding company, with horrible management. But management will be gone one day, and the outstanding company will remain. In the short run this stock may continue to fall, as there are valid concerns with its liabilities, which are huge. But I am buying all the way down, as this is as close to a homerun I can see in this sector. The downside risk is miniscule, while the upside is gigantic.

Looks like a good buying opportunity with the stock beaten down and oil at $100. Drill baby drill! In the ocean!

Oil looks like it will stay up and deep water drilling is here to stay whether we like it or not. Just having the lawsuit is keeping the stock down, once it is done the price will bounce and things will looks up, until then it will be pretty choppy, bu I'm not one to ry and time things.

real money @ 45.4692

Low valuation, High Insider buying and institutional buying. May make a real buy today.

M* ultimate stockpickers

hopefully plucked at the bottom. 5 Year outperform!

Picking the bottom here... I hope.

taking a lot of heat for the recent spill, but chevron already assumed responsibility

I've been watching this company for a long time. Now that we know RIG won't be on the hook to BP for the spill (at least no claims to insurance), I'm confident enough to give this an outperform.

RIG has some issues; let's not fool ourselves. I expect they'll cut the dividend to start raising cash, but I'm more concerned about 5 years from now than a dividend 6 months from now.

For that reason, 5-year outperform.

Best of the driller caught in the perfect storm but patience would reward those "that stick with it". And if they can retain their dividend it'll be even more sweeter.