Tuesday, October 16, 2007

Bookkeeping: Adding to the Deep Sea Oil Drilling Names

I mentioned last Thursday that it looks like the forgotten deep sea oil drillers were finally catching a bid. Today, with most of the 'energy' sector down, these stocks are holding steady with small increases across the board. Maybe they finally have their 'sea legs' underneath them (ho ho ho, could not resist)

Anyhow I am adding exposure to 3 of the 4 names in my basket: GlobalSanteFe (GSF), Diamond Offshore (DO), and Atwood Oceanics (ATW). It appears there is a shareholder meeting November 9th for the GlobalSantaFe/Transocean (RIG) merger - so once that overhang is gone perhaps these stocks can run - this sector has been seriously lagging the oil service names. All crude has done since I bought these is gone up, putting even more money into the pockets of their customers; and essentially we are going to be creating a near monopoly post merger in this space which means even more pricing power.

Long all names except Transocean in fund; long Atwood Oceanics in personal account

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