It is just too oversold.
RIG P/B = 0.82, P/E = 05.67
HAL P/B = 2.47, P/E = 21.88
SLB P/B = 3.54, P/E = 23.69
RIG looks soo cheap.
I bought more RIG today.
A moratorium on Gulf drilling is a mistake.
Newman, Rosa, and Bobillier should stop sitting on their hands.
If the well had been drilled the way Transocean suggested, there would not have been the blowout.
This should be told to the world so the blame is placed squarely on BP's shoulders. Am I nuts? Let me know.
Completely agree, just to get back to a Book Value of 1.0x would yield a 30% return. That puts the stock at $65 from here. Liability won't be negligible, but as long as they can make any money going forward after paying for extra lawsuit/legal expenses, book value will continue to increase, making it even cheaper. This is a once in a lifetime buying opportunity. Longs have to hold on and be rewarded. At worst, you can sell calls on pops but don't sell the underlying. You can lose significant upside after the speculators cover and go on to other things. Remember that they don't know this company like you do, they are just looking for another stock to speculate on using their technical "analysis".
If I am not mistaken,
a1. RIG leased the drilling platform to BP.
a2. BP directed the drilling operation.
Thus, RIG is not liable, nor negligent, so RIG will not be sued.
On the other hand:
b1. BP may have rushed the drilling.
b2. BP may have failed to take safety precautions.
Thus, BP may be found liable and sued.
And, BP may be found negligent and uninsured.
RIG is Too Oversold & Undervalued at it's current P/B & P/E.
Where will RIG be in 3 months to 6 months? $75? $100?
Bashers are full of S H ! T.
And Shorts will get F U C # E D.
People that actually shorted it will start covering Monday on BP's weekend progress. Now capturing about 1/3 of the spilling oil.
The short trade is over, and RIG is a coiled spring. Fundamentals will be relevant again.
RIG is far too Undervalued and Oversold, that Bashers or Shorts can say all they want; but, RIG will rebound soon enough.
BP was down today 5.37% and RIG was only down 1.78%
BP will probably bare all the liabilities.
My money is on RIG.
Good luck to the longs.