BP back to 70's etc.. once the inflation phase kicks in from all those dollars. And select commodities players as well, look for 09-10 for a big runup on them again.
i share the same view i think all the massive liquidity measures taken by the world and possibly lower rates even tmrw will create an inflationary period like no other...
Look at BP climbing. Glad I loaded up on that big dip on the 27th. With the fed cuts etc.. BP etc.. is gonna rocket. I wrote a bunch of puts on BP for nov that day as well but Looks like they expire worthless to the buyers.
Oil is def. going to 100 soon. The fundamentals of the global economy have not changed since oil was at 140, so there is no reason for oil to remain this cheap for long.
Transocean Inc (RIG) Signs New Contract at Record High Rate Buy 1H Price (29 Oct 08) US$75.05 Target price US$159.00 Expected share price return 111.9% New Deepwater Rig Contract at Highest Rate Ever ¡X Yesterday Transocean announced that it had executed a new contract with a client for an ultra-deepwater rig that will be built in South Korea. The rig has not yet been named but it will be delivered and put in service in the fourth quarter 2010. The day rate on the fiveyear contract, which will run through the end of 2015, is $640,000. This is a new record day rate for a multi-year drilling contract. Ææ What Does This Say About the Deepwater Rig Market? ¡X This contract sends a highly positive message to investors regarding the state of the market for deepwater drilling services. For the past few months investors have been dumping offshore drilling stocks in anticipation of a major downturn in demand for offshore rigs. While the global economic slowdown and falling oil prices are real concerns, the business of finding oil and gas in deep water goes on. Ææ All Ten of Transocean's Deepwater New Builds Are Committed to Clients ¡X With the contract announced yesterday, all ten of the deepwater rigs that Transocean is building are now committed under high-priced, multi-year contracts with major oil company customers. These rigs are scheduled for delivery between the first quarter of 2009 and the fourth quarter of 2010. Ææ Sell-off in RIG Shares Is Overdone ¡X While the sell-off in Transocean and other drilling stocks has been relentless, the market may have overestimated the magnitude of a possible downturn in offshore drilling in the years ahead. We see multiple signs of continuing strength in the deepwater market, and for this reason Transocean is our top pick in the sector. 30 October 2008 Citigroup Global Markets UPDATE 2-Transocean unveils 5-year ultra-deepwater contract Wed Oct 29, 2008 3:48pm EDT Transocean Inc. has inked a five-year contract valued at about $1.2 billion http://www.reuters.com/article/marketsNews/idUSN2948066620081029?rpc=77 http://www.bizjournals.com/houston/stories/2008/10/27/daily36.html
Transocean rallies on rig deal worth up to $1.2B October 30, 2008 8:45 PM ET ... "This contract sends a highly positive message to investors regarding the state of the market for deepwater drilling services," Citi Investment Research analyst Robin Shoemaker said in a note to clients. The new rig's day rate â $640,000 â is a record for a multiyear drilling contract, she said. Shoemaker rates the Houston-based company as "Buy" with a $159 price target, implying she expects the stock to more than double from Wednesday's $73 close. Calling Transocean her top pick in the sector, Shoemaker recent drops in its share price likely were overdone. "We see multiple signs of continuing strength in the deepwater market," she said. http://news.moneycentral.msn.com/ticker/article.aspx?symbol=US:RIG&feed=AP&date=20081030&id=9337111