Energy sector specialist Elliott Gue sees opportunity in Transocean (NYSE: RIG), a leadin player in the deepwater drilling area. Here's the latest advice from The Energy Strategist.

"The market for deepwater rigs, however, has remained resilient and one drilling with direct leverage to deepwater rigs is US giant, Transocean, the world's largest offshore drilling company, with 136 rigs as well as ten under construction.

"Roughly 68 of those rigs are 'semisubmersibles,' and 39 are ultra-deepwater or deepwater rigs capable of drilling many of the complex plays being targeted around the world today.

Continue reading Transocean (RIG): Drilling for deepwater gains

Transocean (RIG): Drilling for deepwater gains originally appeared on BloggingStocks on Thu, 30 Apr 2009 14:00:00 EST. Please see our terms for use of feeds.

"What's going on with Transocean (NYSE RIG), the owner of the world's biggest fleet of offshore drilling rigs?" asks Richard Moroney, a specialist in blue chip stocks.

In his Dow Theory Forecasts, he explains, "The shares plunged 67% - nearly $100 a share - in 2008, and we can't blame the usual suspects." Here, he explains why he continues to rate thes stock a "Focus List Buy" in his blue chip-focused advisory service.

"Poor operating performance? Wall Street expects 2008 per-share profits of $14.34, up 68%. Shaky future? Transocean is expected to grow per-share earnings 4% in 2009 and 10% annually over the next five years.

"Fundamentals eroding? Not at all. The balance sheet is sturdy and the backlog stout at $41 billion, or three times expected 2009 revenue. Rather, we see two chief contributors to Transocean's steep slide, and neither should jeopardize long-term prospects.

Continue reading Transocean (RIG): A platform for profits?

Transocean (RIG): A platform for profits? originally appeared on BloggingStocks on Fri, 06 Feb 2009 14:15:00 EST. Please see our terms for use of feeds.