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Vantage Drilling Company upcoming second quarter results

|Includes: BP, Vantage Drilling Company (VTG)

VTG, a small and relatively obscure (market cap of 321.51M as of today) offshore contract drilling services company has been slowly recovering from the slide in price of the last three months, possibly due to a play into its upcoming Monday Q2 earnings results, but definitely benefiting from an unsolicited proposal to acquire it at higher than the market price and the recent issuance of $1B of senior notes.

VTG seems to be poorly positioned to weather the recent offshore drilling scrutiny resulting from the BP disaster, which the stock definitely took some beating from, sliding from the April 29th high of 1.86 to the low of July 21st of 1.08, a drop of 41% in stock value. However, this does not have to be so, as with all of its operations concentrating in the non-US waters and relatively short memory of both legislators and consumers, offshore drilling is certainly here to stay.

VTG is a risky stock of course, with Beta of 2.14, and anyone desiring to play into the earnings announcement is in for relatively high volatility on Monday, however, with shares short number slightly decreasing from the last month from 5.68M to 5.34M, the stock may finally be poised to recover some more



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