Transocean Ltd. (RIG)

[ogbull]

How Low Can Oil Go?

This article says oil will bottom at $50 and hold there for about 6 months or until the excess supply is removed. Then crude will recover to maybe $60 or $70.

I believe it. I also believe that the world economy will heat up and crude oil deman will increase. And, I also believe the cheapest low sulfur crude will be found in deep water. Deep water drilling is the future. RIG has 5 drilling ships on order that are alredy leased at day rates of $500,000.

I recall the advice of many great investors: "Choose wisely, buy in, and hold." I'm ganna take that advice because I truely believe RIG will break $100 in the next 2-3 years. Even if it tales 5 years, at $100, I would still realize a 20% annual return by holding tight. I might also add more shares on the dips.