I'm going out on a limb and predicting that investors who invest in Tansocean (RIG) at this level could see a short term pop of 23% - 27% annual total return over the next five years. The stock has been beaten down but the company now has almost all its deep water rigs back on line and the last one should be operational shortly.
A look at the weekly price over the past 2 1/2 years vs. the 10, 50 and 50 week moving averages on this chart provided byBarchart shows how beaten down it is:
Click to enlarge
Transocean provides offshore contract drilling services for oil and gas wells worldwide. It offers deepwater and harsh environment drilling, oil and gas drilling management, and drilling engineering and drilling project management services. The company also offers well and logistics services. In addition, it engages in oil and gas exploration, development and production activities primarily in offshore Louisiana and Texas and in the United Kingdom sector of the North Sea.
As of February 10, 2011, the company owned, had partial ownership interests in, and operated 138 mobile offshore drilling units, including 47 high-specification floaters, 25 midwater floaters, nine high-specification jackups, 54 standard jackups, and three other rigs, as well as one ultra-deepwater floater and three high-specification jackups under construction. Transocean was founded in 1953 and is based in Zug, Switzerland. (Yahoo Finance profile)
The technicals on Barchart have been improving as this chart of the hourly trading activity over the last month reveals:
Click to enlarge
- 40% Barchartshort term technical buy signal that is getting stronger
- Trend Spotter sell signal that is weakening
- The stock has begin trading above its 20 day moving average
- New lows and down 11.89% this month
- Although the stock is trading below its 50 and 100 day moving average Barchart computes a technical support level at 53.72
- Relative Strength Index is 46.89% and getting stronger
- Recently traded at 54.59 which is below its 50 day moving average of 58.81
Fundamental factors:
No comments:
Post a Comment