Some more food for thought... I've recently began looking into RIG. They are a oil transport/off shore drilling company that has a fleet of ships and deals with major off deep water projects. They are currently in the process of creating an mlp (I believe as a tax shelter), increasing share holder returns, rebuilding/growing their fleet and expanding into other areas in off shore and oceanic drilling projects in mid water areas. It is projected that there will be a surge in Africa if I recall correctly and they recently gained new contracts in Alaska. Roughly 1/3 of the fleet is open for new contracts and I believe at the 2/3 current working rate that all future projections are easily achievable. The stock took a beating after the gulf crisis just like bp due to the facts of bad press related to the incident. I believe that the long story here is very appealing and stands to have some serious legs. With the increased dividend and the current price I believe the downside risk is limited to the 45-50 area and would be surprised to see it pull back much more below the $48 level. For fun I started a play option account and would recommend selling the jan. 16th puts to open. Strong entry and building a position on this pull back we are in now should be very rewarding. There should easily be profits taken by short term trades in the 55-60 zone and based on my chart reading and the large volume spike a few weeks ago in the $48 range combined with the earnings beat and past performance I see Moodys $50 price target as extremely conservative and predict $60 some where in the not so distant future. I'd like to say we will see a strong recovery in the industry over the next two to five years and eventually flirt with the days of old and $100-$160 pt by 2016 but only time will tell. Either way $55 to me is an easy sell if you want a quick trade so have a blast. The lows average for the last ten/twenty years is around $45 and the high I'd say is in the $80 -$90 range so if you read this now check back with me in two years and look at my last few articles on mhr, fb. nvda and amd. Every call I made is up 50-100% and some more. Granted I've been wrong and eating it too.. lol.. No ones perfect. NES is a dud - But I don't believe I ever wrote an article on it. All ways do your research and make your own decisions but RIG is definitely worth a look if you have some free time. Happy Trading and keep an eye out for that Golden Cross on the ten year RIG chart. I think we'll see it form solidly within six months :)
Disclosure: I am long RIG.