Transocean was recommended by Sound Advice as a Top Pick for 2012 at $41.81 inInvestment Digest issue 711, dated January 18, 2012.
“Transocean LTD (RIG) is up 27% this year and has been a wild ride. We are getting dizzy and selling RIG.
“This is a Swiss company and as such must declare the dividend annually. Recently the company’s board did not approve its 2012 dividend ‘in order to keep its balance sheet strong.’ However, that dividend was a comfort to us because it put a floor under the price of the stock. (The yield would keep the stock from dropping too much.)
“With earnings expected to be poor this year, we think the risk has increased substantially. We believe we can find better investments in oil and natural resources with a more favorable risk/reward ratio.”
- Grey Cardiff, Sound Advice, April 13, 2012