Transocean: An Opportunity in Falling Oil

Crude oil's price has fallen from over $145 in July to under $115 in August and there is every indication it will fall further, at least in the short-term, as expectations of global economic growth and the associated thirst for energy are both trimmed. As irrational as was the rapid surge to nearly $150 oil, current sentiment could easily take oil to $100 or lower, despite the predicted continued growth in long-term demand. Mr. Market, as is often the case, is hardly rational or efficient in the short-term -- his wild exuberance in driving the price of black gold sky-high has now been replaced with depression, which even potential threats to supply cannot turn bullish.

This sudden fire sale of all things related to oil has created some opportunities, as various energy stocks have been brought to below fair value. Though this applies to quite a few companies, one tha