RIG is the leader in deepwater drilling and trading at fantastically low valuation ratios. Fear of a world slowdown, US opposition to deepwater drilling, and the recent decrease in oil supply is behind the sell-off of energy companies. These are all short-term effects which have decreased the price of RIG and made it attractive to a long-term investor. Deepwater oil will become increasingly a part in maintaining the world's current production of oil as the current supply peaks. RIGs Price / Cash Flow (TTM), Price / Earnings (TTM), '08 PEG, Price / Sales (TTM) are historically low. They margins and expected growth is above industry average. The company also enjoys greater leverage than its peers (but still far below what could be considered risky), which will allow it to earn a higher ROE.
$129.97 (08/26/08)
