With the current price of $36.499, rounded down to $36, a 50% gain translates to a price of $54.
The 50% price gain is based on a 50% gain on the bottom line on the horizon. That in turn is based on firm + growing backlog backed by the financial strength of corporations with the deepest pockets on the planet. That in turn is re-inforced by new units coming on stream, on the horizon [pun intended], creating the most modern HIGH TECH drilling fleet on the seven seas.
All above also requires some disciplined + nuanced dividend increases + sophisticated asset allocations,
over which we humble posters, have zero influence at this time.
I am also looking forward to the new deep water rigs coming on line this year, which will lessen the backlog and put more cash on the table. However, don't forget, we are also loosing the revenue from the tender rigs sale. I am not sure what the net positive of these two are, but I don't think it is some big magnitude of growth. It is probably moderate positive. Anyone have any ideas? Therefore, I don't see why it will not continue to basically trade sideways / a little up for another year when the next set of deep water rigs come on line.