its still assimilating the company it took over (can't remember name) and it has had a
nice run up in the last year. give it time. its a great stock. mike

RIG has been in the news. I just glanced at the chart. It has all of the elements of a
winner. But I am doing so well that I do not look at any new ventures. I keep going back
into ones that have paid off. We are not in a Bear Market. We are in a confused market.
Most stocks are dropping. A few are hitting new highs. A am fairly certain that if you do
all your homework first you will do well on this stock.

My reasoning for this trade is Transocean is about to get a much higher PE ratio. SLB
trades at 18x earnings while RIG trades at a huge discount at only 9.5x earnings. This is
crazy as deep water drilling is very predictable for the coming years. If RIG gets a PE of
13…the shares would trade up to $220. I think that is where this stock is headed this
year. With Transocean, no matter who owns the oil -a major global company, a friendly
government, or an unfriendly one - they all need deep water rigs from Transocean to
extract the oil. This should make RIG’s earnings power much more dependable than a major
oil company over time (these governments don’t have the technology or deep water
drilling rigs themselves).

Dear Jimmy Cramer and Stockpickr community,

Given RIG's solid run in stock price, this may sound a little greedy...but why isn't
Transocean getting a more favorable multiple? RIG has a more favorable earnings outlook
than competitors and stands ready to leverage a more strategic position in the deep water
drilling space...Yet it trades at 10 times earnings while counterparts like DO and NE
trade at 20 and 13 multiples respectively? Thoughts?