Transocean Ltd. (RIG)

[ogbull]

I'm surprised price not holding above $16, but not to worry... we will hit $20 by the end of January. Lots of buyers waiting on the side to make sure crude has bottomed.

I posted early that brent at $50 is the sweet price for 2015. If adjusted for inflation, $50 brent is about average price for the last 40 years. $50 brent cuts marginal production and helps the Saudis maintain market share. $50 brent helps Europe recover and increases oil demand. In fact, $50 brent will boost world economies and help Japan, China, and India recover. This will increase worldwide crude demand by 10% and raise brent prices to $60 to $70 by Dec 2015.

At $50 brent, RIG will cut the dividend, and will prosper where other offshore drillers might not hold their heads above water. I see the share price doubling by the end of 2015 with another double by the end of 2016.