Angel Stoychev
Long-term horizon, momentum, growth at reasonable price, industrials

Rowan Offers Asymmetric Risk/Reward With 35% Upside Potential In 2014; Further 50% In 2015

Rowan Companies plc ("Rowan," "RDC" or the "Company") (NYSE:RDC) is a provider of international and domestic offshore contract drilling services. The company prides itself on its leadership position in high-spec and premium jack-ups, having the highest jack-up day rates, and having the youngest fleet in the industry. Its deep undervaluation, in combination with several upcoming catalysts results in an asymmetric risk/reward profile, with 35% possible upside in the next 10-12 months and even higher appreciation in the future.

1. Business overview

Rowan is a geographically diversified company, with a fleet of 30 jack-ups and 4 ultra-deepwater (UDW) drillships, three of which are still under construction.

One-third (10) of the jack-up rigs are located in the Middle East, seven...

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