Transocean RIG has had a terrible couple of years ever since the Macondo oil spill.  Fears about liability exposure, and substantial operating difficulties due to regulatory changes resulting from the spill, have forced RIG to remove many of their most profitable offshore rigs while they are under repair.

Our investment thesis has been that the market was overestimating the penalties that are likely to be assessed due to the oil spill, and that RIG’s leverage to higher oil prices through day-rate expansion, makes it one of the better call options on higher energy prices.  As the company continues to update their equipment s that it can take advantage of better pricing and solid growth opportunities in Brazil and West Africa, among other areas, we believe that RIG could be a $90 within 2-3 years.

Below is a research report highlighting some of the more recent developments:

http://online.barrons.com/article/SB50001424053111904797004577285392119062530.html?mod=BOL_hps_oe

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