Since RIG is getting close to its 4-yr low's at ~$41, I want to know whether it's the [great] buy opportunity or it may even break lower. Comparing to the low's in Dec '08 ($41.46) and June '10 ($41.39), these are my basis. Welcome other serious thoughts.
Dec 2008: US major recession, oil price ~$35/barrel, but P/E ~5.
June 2010: major oil leaks w/ risk ~$5-20B for RIG. US banned drilling indefinitely. Oil ~$67/barrel.
Oct 2011 (today): potential US major recession but more distant (Europe). Oil is ~$79/barrell.
With comparison on those major points, it's a screaming Buy to me. What do you think, seriously?
You are asking this board whether to buy or not? This board is noting but a collection of misfit amateurs. The more they scream buy, the lower it goes. Anyone that has any experience in the market KNOWS the bottoming of a stock is a process, not a price point. Many here seems to think this is about Greece, it isnt. Europe is going through what US was going through in 2008. 2012 will be a tough year as US recession will deepen and Europe will be bottoming which means China will suffer hard as 70% of Chinese exports go to Europe and USA. GL to longs, you will need lots of it.
On the other hand,if greece defaults, it can drop below 25. Ask those who bought at $65 not too long ago how they feel now. Greece problem was discussed back then. Had they excercise more caution, they would have dne better. Oportunity comes all the time, no need to fear being left out. But if u get wiped out, that is permanent. However, Do whatever u want with your money