© Reuters. Transocean: Buy, Sell, or Hold?
Transocean (NYSE:) is highly leveraged to oil prices. However, the company has a high debt load and offshore drilling is expected to be the last segment to recover. Patrick Ryan gives his take on whether RIG is a buy, sell, or hold.Transocean (RIG) qualifies as a penny stock as it trades below $5 per share yet it is certainly worthy of your attention as an investor. Keep in mind, plenty of stocks have jumped from penny stock status to highly-respected publicly traded companies in fairly short periods of time.
RIG is a Swiss offshore drilling contractor and drill management service, provider. RIG provides oil drilling rigs through contractual agreements with clients. RIG’s rigs are used to explore oil and gas. From offshore drilling rigs to manpower, equipment, and related services, RIG provides a little bit of everything in the oil industry. In particular, the company focuses on drilling services for deepwater projects and those performed in harsh environments.
Investors who have studied the oil and gas industry in-depth insist RIG’s fleet is one of the most versatile and modern in the entire world. However, the company has its fair share of challenges. Is RIG a solid investment or should it be considered a Hold or even a Sell? We answer this question below.
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