ORIG - Got to be something I'm missing

Discussion in 'Stock Market Forum' started by Katang Finance, Jan 12, 2016.

  1. Katang Finance

    Katang Finance Guest

    Feb 2014
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    Because the numbers I'm privy to certainly warrant a higher stock price than 1.40. As matter of fact when you run comparisons with other companies in the space this company stands out. Backlog, Rig count, Rig condition, Rigs contracted(I know a couple coming off contract this year but one can't be certain that those contracts won't be replaced with new ones).

    I know the sector is depressed right now but Ocean Rig UDW Inc. stock price has been hit a lot harder than most and the numbers just don't support such a hit. No one knows what oil prices will be 6 months from now?

    Regardless, I own a few shares at 1.61 and I'm thinking about buying more today and just thinking out loud.
  2. petesede

    petesede Guest

    Dec 2014
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    It looks interesting if you don´t mind parking money. My first reaction is that it is just going to sit for at least 9 months, so you can probably get it at the same price in the 3rd quarter. The problem isn´t just the price of oil, the problem for drillers is the amount of production that is currently offline with more going offline every day. Not only do we have to see oil prices rebound, which is going in the opposite direction, but then we are going to have to work through all that offline production.

    You could always get lucky and one of the big boys goes bargain hunting and buys them out. But man, when stocks are that low and have that small of a market cap, someone farts and you can lose 25% I set an alert on it and will look at it in July, but I think you have to wait until oil bottoms before you even start looking at drillers and then you have to look at how much production is offline.

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