Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore driller Transocean
With that in mind, let's take a closer look at Transocean's business, and see what CAPS investors are saying about the stock right now.
Transocean facts
Headquarters (founded) |
Houston (1953) |
Market Cap |
$17.60 billion |
Industry |
Oil and Gas Drilling |
TTM Revenue |
$11.48 billion |
Management |
CEO Robert Long (since 2006) President/COO Steven Newman (since 2008) |
Return on Equity (average, last three years) |
28.3% |
Competitors |
Noble
Pride International |
CAPS members bullish on RIG also bullish on: |
Chesapeake Energy
General Electric |
CAPS members bearish on RIG also bearish on: |
General Motors
Citigroup |
Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 902 of the 931 All-Star members who have rated Transocean -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include TSIF and rdpatton, who are ranked in the top 20% of our community.
Late last month, TSIF noted that with "it's P/E, backlog, top notch equipment, long term contracts, (worldwide), [Transocean] may suffer slightly from oil prices, but oil exploration/drilling/ is forward planned, several years out."
In a more recent pitch, rdpatton follows that bullish line of thinking, writing:
I think this will double in a years time. My assumption is that current oil fields will continue to deplete at a high rate thus driving the need to replace those reserves. I think off-shore drilling is the next lowest cost way to gain large oil reserves and thus [Transocean] and other off-shore drillers will continue to be in demand. Also, new builds will come on-line slower due to credit crunch and current low price of oil thus keeping day-rates high. Also this company has a large backlog which I do not believe will see any cancellations except for potentially a number of contracts held by companies that [file for bankruptcy protection].
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