RIG Transocean: The short recovery is over

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	David Sachdev
	Washington, DC User since Dec 2009	38
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The short recovery is over

But Transocean still has a long way to go as far as it's recovery. I think that this is pretty conservative, and that we will see the 10% recovery much sooner, but you have to be prepared to hold onto this stock for longer as the liability for the horrible oil spill gets determined.

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What People Are Saying...

David Sachdev said at 8/5/10 11:39 AM Price action was $57.22 3.66 (+6.8%)

Transcoean Ltd. /quotes/comstock/13*!rig/quotes/nls/rig (RIG 57.05, +3.49, +6.52%) shares jumped 6% to $56.69 after the company said in a filing that its contract with BP PLC /quotes/comstock/13*!bp/quotes/nls/bp (BP 40.25, +0.86, +2.17%) could protect it from liabilities and fines in the Deepwater Horizion explosion on April 20. The blast and subsequent sinking of the rig caused the Macondo well to rupture, triggering the worst maritime oil leak in U.S. history. BP has already set aside $20 billion to cover spill victims, but still faces fines and other legal actions as it continues to pay for the clean-up. Shares of BP rose 2.4% to $40.33, the day after it said its static kill of the blown-out well was successful. Transocean released the contents of its BP contract in a filing with regulators.

David Sachdev said at 9/10/10 11:13 AM Price action was $58.62 3.32 (+6.0%)

Talks of paying BP 1-2 billion and settling out of court is causing this stock to hit new levels today. I believe that the stock has lost something like 40 billion in market cap, and I need to do my research again on how much insurance took care of the cost of the lost rig. You can imagine that their insurance bill has gone up by leaps and bounds, but I'm pretty sure that I'll hit my target on this one.