As disclosed in the Telegram group today I added substantially to Transocean (RIG). For newbies to the name and offshore drilling in general, I have written up a quick primer on why I am interested in the industry and think it will be a multiyear recovery and upcycle that is just now starting. I’ve also highlighted Transocean’s most recent contract that provides additional color on the name.

The stock is trading off heavy today, along with all offshore drillers. After over a 100% run-up since October and a slight miss in earnings, it makes sense. As a value guy looking to hold an industry that is rapidly improving, I welcome this selloff. The stock is attractive, it’s levered to the gills and if rates keep improving, the equity is a multi-bagger over the next few years.

Here are my notes from the Q4 Transocean conference call.

Enjoy!