Transocean, Ltd. (RIG) Jumps
Off a decent quarterly report, a reiteration of the planned dividend and continued good news coming from the gulf of Mexico with regards to cleanup and progress stopping the leak by BP, Transocean (RIG) is off to the races today. As of writing this, the stock is up 8% following a day when it was up 6%. RIG was trading at $46 on monday and is now over $58 – up $12 or 26% in 3 days!
As I mentioned yesterday, if RIG could crack that short term resistence at the $55-ish level, we might see some nice upside. It looks like that happened today.
This stock traded down to the low $40′s at the height of the oil spill crisis. As I mentioned then, this is a fantastic company that will be fine even without the Gulf of Mexico in the long run. You have to buy quality companies when nobody else wants them. Well, at the height of the oil spill, nobody wanted RIG. Don’t get me wrong, nobody wanted BP and I did not recommend buying BP, because they were the focus of the world regarding the spill. RIG, while definitely a part of the disaster, got 1% of the coverage that BP did – therefore, I believed RIG would come out of this mess intact. It now looks like they both will assuming the progress continues.
I got in on RIG in the $51 range. I will probably hang on to this company for a long time. I like my entry point a lot, and the focus on dividends is encouraging.