Wednesday, May 26, 2010

Transocean (RIG) Way Oversold!

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The stock of Transocean (RIG) owner of the Deepwater Horizon drilling rig, has been drastically oversold and presents an unbeliveable value. RIG has been in the Itz Pix portfolio since the blogs inception of July 2009, entering at $67, the stock is presently at $58.58. Even with this enviromental disaster the fact remains that global demand for crude is rising. >>Read >>Chart
Ultra-deepwater production has become significant only in recent years, as noted by Royal Dutch Shell executive in video below. Up until the BP rig disaster, the Obama adminstration was 'for' offshore drilling, because they see the our insatiable need to find more crude oil. Check out this week's EIA report >>LINK

Although BP initially took financial responsibilty for the spill, they have been trying to blame others...besides a recent 60 minutes report that was very unfavorable towards BP, news out today sheds more fault on their part and is postive for Transocean >>READ

During CNBC's Fast Money today, Waqar Syed, Sr. Analyst at Macquarie Capital noted that Transocean (RIG) with $10B free cash flow over the next 3 years has a NAV of $106![go to 8:30 minute mark for report]

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