RIG

Transocean Ltd.

Industrial/Transportation


Presented:01/15/2015
Price:$15.21
Cap:$5.51B
Current Price:$4.00
Cap:$3.50B

Presented

Date01/15/2015
Price$15.21
Market Cap$5.51B
Ent Value$13.35B
P/E RatioN/A
Book Value$40.32
Div Yield19.1%
Shares O/S362.24M
Ave Daily Vol14,520,000
Short Int28.08%

Current

Price$4.00
Market Cap$3.50B
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company provides deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. As of February 18, 2014, it owned or had partial ownership interests in, and operated 79 mobile offshore drilling units. The company had a fleet of 46 high-specification floaters, 22 midwater floaters, and 11 high-specification jackups. The company serves independent and government-controlled oil companies. Transocean Ltd. was founded in 1953 and is based in Vernier, Switzerland.

Please note this is an update to SHORT— Offshore Drilling: Basket of Everything (Update), which was presented on October 27, 2014.
Publicly traded companies mentioned herein: Transocean Ltd (RIG), National Oilwell Varco (NOV)

HIghlights

The presenter remains short a basket of offshore drillers, and “anything else that touches offshore.” Transocean (RIG) - the largest offshore driller in the world - is his favorite short in the group, and he went so far as to say the business is “a modern day equivalent of the floppy disk; it is simply not necessary.” At this point in the cycle, with all the majors cutting back on capex (and offshore in particular), he sees it as highly unlikely that demand returns.

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Idea Discussion

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