Much more demand for ultra-deepwater and jackup rigs means "much more room to run" for offshore...

Much more demand for ultra-deepwater and jackup rigs means "much more room to run" for offshore drillers, Credit Suisse says. The high percentage of future earnings currently tied to rigs under construction has been a drag to the stocks, the firm says; Ocean Rig (ORIG) is an example of one that trades below book value and net asset value as much of its fleet is now under construction.
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Comments (4)
    , contributor
    Comments (1149) | Send Message
    Not going to invest in (ORIG) as (DRYS) owns most of the shares and is selling it off as it needs cash. Not going to invest when the drillers are doing same as the shippers did 5 yrs ago, buying tons of ships (rigs) and saturating the market driving prices into negative earnings. Just as all the SHIPPERS look at any of them...


    25 Mar 2013, 12:00 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6933) | Send Message
    So as (DRY) position reaches say 10%, buy (ORIG).
    25 Mar 2013, 01:59 PM Reply Like
    , contributor
    Comments (1149) | Send Message
    (DRYS) owns somewhere around 59% after the recent "Offering of shares" which took them down to this point from about 62%. The only GOOD thing about this is that (DRYS) has a LARGE amount of $ hidden in (ORIG) shares but only when they SELL them. Holding them on the books only means the chances of some Euro government stating that ALL companies have to kick in 10% of their value to the monetary funds... They sold 7.5 million shares in February @ 16.85 and IF it manages to break that point expect to see additional shares come out of dryships.


    (ORIG) has downside aqs (DRYS) sells these big hunks of shares in an attempt to stay "Afloat" in the seas. There are also these "Drill Ships" and additional drill rig companies starting up and increasing their share of the drilling pie.


    You would be better off buying one of the more specialized drillers such as (HERO) or ??


    NOTE my woman owns (DRYS) as it has plenty of protection with the just under 60% ownership in (ORIG) as there won't be a lot of downside as basis until (ORIG) drops under about 7~8 bucks a share Drys can't get much lower without chance of hostile takeover due to it's base valuation. I do not own any stocks mentions or any options.


    25 Mar 2013, 03:58 PM Reply Like
  • Money Maverick
    , contributor
    Comments (14) | Send Message
    Re SFL's future, it is directly dependent upon FRO's future, and FRO's future is not looking good... If it appears to be too good to be true, it usually is... read the recent missive re Frontline authored by Tim Plaehn, 2/27/13, " Ship Finance, High Yield Dividend Facing Future Dark Clouds"
    25 Mar 2013, 12:35 PM Reply Like
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