Clearly the negativity today was driven by RIG's negative comments about 2014 demand. However, as far as ESV is concerned I think the selloff was overdone. If you actually listen to/read their conference call they have not reflected any of the weakness that RIG mentioned. When you compare the notes of these two companies, it's almost like they operate in totally different markets. This could very likely be due to the age and lower spec rigs that RIG owns vs. the newer high spec rigs that ESV owns.
Too many people sell first and think later. ESV is best of breed and has some major competitive advantages over RIG. I am using this opportunity to add to my position.
Agreed...and there is a bunch of sour grapes there too. Not long ago RIG was the company-to-beat. Now they are on the downward slope of "has beens" and you know that they are not happy about it. "Don't look how bad we're doing..." Ensco and Seadrill are heading up on a rocket and TransOcean is now second-rate. Naturally they become the targets. You notice ESV and SDRL are not the ones pointing fingers (or if they do they're pointing toward the future).
There is so much mis information out there. I bought ESV because of low debt, newer rigs and the 50% increase in divy. Then I read about an hour ago that sdrl and rig have newer rigs than ESV. Isn't anybody doing there job when all the analysts are all over the place with mis info? GEEeevvve! Crooks are everywhere. You can't trust any analyst.