Monday, 23 June 2014

RIG - drilling upward

Whilst the main market saw a day of churn, there was notable strength in the drillers. Transocean (RIG), settled higher by 1.4% @ $45.99. Near term outlook is bullish, with relatively easy upside to the $48/50 zone by mid July.

RIG, daily

RIG, weekly


Suffice to say, I remain a big fan of Transocean (RIG). The balance sheet is sound, and Mr Market is starting to appreciate the stock somewhat since the post earnings intraday smack down of 7%.

RIG looks good for the long term, and it would not surprise me to see RIG trade close to $100 by late 2015/early 2016.

*I have no position, but would look to pick up on any summer/autumnal weakness.