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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Jurgis Bekepuris who wrote (37711)	5/2/2010 11:40:39 AM
From: Mark Marcellus	Read Replies (1) \| Respond to of 78464

So it's a "sell, sell, sell, bad shit may happen" mentality based on no known facts. I don't think that's a fair assessment. The fact is that RIG does have a history of operational mistakes - though in the past it's been rigs offline due to operational problems rather than due to a cataclysmic event. Nevertheless, this management has long made me uneasy. This is due not only to their spotty operational history compared to say, DO, but also due to what appears to me to be a greater focus on financial engineering than operational engineering, and a general lack of transparency. I stopped giving this company the benefit of the doubt a while ago, and I can't blame anyone who is inclined to sell now and ask questions later based on the current events.

To: Jurgis Bekepuris who wrote (37711)	5/2/2010 12:49:54 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78464

Jurgis - I didn't say sell RIG, I have never owned it so i can't sell - I was just contemplating possibilities. The stock had a terrific run and still trades at 2x tangible book, so it trades on earnings power rather than replacement value. I believe there will be consequences for drilling in the Gulf which will affect dayrates, probably dramatically. So RIG's earnings power could suffer much more to than BP's. Buyers need to take that into account. My inclination would be to buy another driller that suffers collateral damage (NE).