Transocean Ltd. (RIG)

[ogbull]

You're not thinking straight. Why would major stake holders want to bankrupt RIG? Suspending the dividend ensures that RIG can make it through the downturn and emerge in better condition than any other offshore driller. The number of offshore rigs need to drop 20% or more. Lots of negatives must be overcome. RIG can't do this saddled with the high cost of maintaining the dividend.

Most investors who bought in because of the dividend have all ready bailed out. They'd be fools to hang on during these trouble times. Naturally, if RIG maintains the dividend, they will buy back in and the price will spike. On the other hand, those that are still in now are not fearful of a dividend cut because they think such a move will boost share prices.

Yesterday, RIG traded 5 million shares in the first hour. The sellers were in a panic. The buying was likely short covering. This type of trading needs to get done before we see a run up, which will surely come.

Crude bounced up and down due to options expiring. Nothing to worry about. These are all moves needed before we start climbing back.