We downgrade RIG from Neutral to Sell, with 1% upside to our new 12-month P/E and EV/EBITDA based $50/share target price (previous $53.00/share). The key reasons for our downgrade are the following: 1) RIG has outperformed recently following the announcement that it will be added to the S&P 500 Index after the close of trading on October 28. Once technical buying from Index Funds end, the stock’s demand will reduce as macro fundamentals are weak in the offshore drilling space. 2) The key catalyst for offshore drillers is increases in dayrates, and rates have flattened for UDW (ultra- deepwater) rigs while early signs of utilization/dayrate weakness in the deepwater market are emerging. 3) RIG faces significant contract renewal risk, as several of its deepwater rigs reach contract end over the next 6 months, in an environment where significant new capacity is being added to the market. 4) RIG faces structural challenges as its floater fleet is aging and it needs to make sizeable investments to high grade its fleet. It has taken some recent steps in that regard, but needs to do more. 5) RIG appears to be one of the more expensive stocks, when compared on P/E multiples based on normalized EPS of high-spec rigs.
Apple's results disappoint ahead of holiday quarter
Goldman sees significant headwinds in Transocean's near and long-term future. "The key catalyst for offshore drillers is increases in dayrates, and rates have flattened for UDW (ultra-deepwater) rigs while early signs of utilization/dayrate weakness in the deepwater market are emerging," noted Goldman. "RIG faces structural challenges as its floater fleet is aging and it needs to make sizable investments to high grade its fleet. It has taken some recent steps in that regard, but needs to do more." When you couple those risks with the stock's seemingly steep P/E of 25 -- a clear premium to peers -- I'd have to agree that Transocean's recent surge is a bit overdone.
BP Third-Quarter Net Profit Drops 34% but raise dividend to shareholders....what about to give that dirty $$$$ to victim & family of Macondo???
As you can see QE cannt avoid recession non since 6 years now?? so??
Asian stock markets traded lower on Tuesday as investors digested a slew of corporate earnings, while sentiment turned cautious ahead of Wednesday’s Federal Reserve policy decision.
Weak U.S. pending home sales data for September missed expectations, falling 5.6% to their lowest level since December. Coming just before the U.S. Federal Reserve holds its latest policy meeting, the poor data raised expectations that the central bank will keep its bond-buying program unchanged.
Although the S&P 500 SPX +0.13% hit a new high overnight, Wall Street ended Monday little changed, providing a weak lead for Asia. Regional stocks trickled lower, coming down from gains made in the previous session.
No growth.....or less growth....
AAPL should stay away of bond debt to please iCahn ???
As growth tapers off, some shareholders have become increasingly aggressive at seeking a bigger return of cash - the company ended the September quarter with $146.8 billion in cash plus short-term and long-term marketable securities.
Billionaire Carl Icahn, who owns 4.7 million Apple shares, has led the charge, demanding the company initiate a tender offer to buy back $150 billion of its stock.
Cook told analysts the company will continue to seek shareholder input on its capital return program, and will announce any changes in the first part of the new calendar year
2008 was US's bubble 2014 will be China's turn??
Xie to China: Pick your poison
Commentary: Property-bubble burst needed for economic restructuring
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By Andy Xie
BEIJING — Gross domestic product targeting no longer serves a good purpose. It sends a dangerous signal for resisting economic restructuring and sustaining speculation. Continuation of GDP targeting would lead to an economic hard landing and massive non-performing loans.
The recent upturn in GDP growth is not good news for China. It has occurred by further increasing the economic imbalance and prolonging speculation. It merely delays the inevitable economic restructuring and increases its final cost.
The bursting of the property bubble is a necessary step in China’s economic restructuring. It decreases funding for investment and increases it for consumption. Prolonging the property bubble is equivalent to resisting economic restructuring.
Delaying tactics in prolonging the bubble are effective for the time being. The Fed has delayed the tapering of quantitative easing, triggering the return of hot money. It sustains China’s shadow banking system, which is the lifeline for the property bubble. One should use the opportunity to deflate the bubble to avoid a forced – and bigger – bursting later. India and Indonesia have increased interest rates, despite the breathing space. China has chosen to light up the bubble once more.
Market forces are likely to trigger China’s bubble to deflate again, following the 2012 downturn, within six months. Liquidity will be squeezed between demand from growing fixed-asset investment and downward pressure due to the Fed tapering. The available liquidity for the property bubble will decrease as a consequence.
Further, China’s credit creation increasingly depends on the shadow banking system. The higher in
The RIG or Ponzi sheme do not work WallStreet???
Revenues down...margin shrinking and this is above $500....lol
SAN FRANCISCO (MarketWatch) -- Apple Inc. AAPL -2.06% said Monday afternoon that earnings slipped 8.5% in the fourth fiscal quarter, but came in higher than Wall Street had expected. For the period ended Sept. 28, Apple said net income totaled $7.5 billion, or $8.26 per share, compared to net income of $8.2 billion, or $8.67 per share, for the same period last year. Revenue grew 4% to $37.5 billion. Analysts were expecting earnings of $7.92 per share with revenue of $36.8 billion for the period, according to consensus estimates from FactSet. The company said it shipped 33.8 million iPhone units during the period; analysts were expecting about 32 million units shipped. The iPhone 5S and 5C launched in the final week of the quarter. Apple shares were down 3% in after-hours trades following the report.