Transocean Ltd. (RIG)

[ogbull]

As long as oil stays under $60, Russia, Venezula, and half of OPEC are screwed. The will not pump more crude because their cost are more then $70 barrel.

he cheapest best-grade oil will found in massive offshore fields, and this is where production companies MUST drill -- and they know it.

This is also where the major natural gas fields will be discovered. Natural gas is the world's future source of energy. Therefore, it's a mistake to peg RIG share prices to the current price of crude.

Sure, some producers are negoiating to sign the best contract they can but, in the end, they will select the best rigs for the job. RIG has the best gas drilling rigs in the business.

All RIG needs to do is set back and wait; however, management should cut the dividend to maintain liquidity. With its large liquidity position, RIG can survive any downturn.

Long-term iValue nvestors should add shares on any pull back.

A share buyback with the dividend savings would also be a fantastic move by management.

The stock will bounce at least $5 when the dividend is finally cut.

All and all... RIG is a strong buy at these numbers.