While it makes little sense to me that driller should suddenly jump if they are reacting to a Presidential proposal that will take years (if ever) to implement - I am hoping the move is in reaction to the breakout in crude oil. We can see some nice moves in the major ocean drillers ....
I will put a 2.5% allocation in Diamond Offshore Drilling (DO) around $91.20... I flipped a coin among a few names. DO has been good to us in the past.... the company reports Apr 22nd, but results from this sector have largely been poor of late. However, if oil continues to bust a move higher - earnings reports won't matter much.
- MKM Partners' Conlon said today's news, even in the best-case scenario without political hiccups, wouldn't lead to incremental drilling until the 2014-2015 period.
Diamond Offshore Drilling, Inc. operates as an offshore oil and gas drilling contractor worldwide. The company provides offshore drilling services in the deepwater, harsh environment, conventional semisubmersible, and jack-up markets to independent oil and gas companies and government-owned oil companies. As of December 31, 2009, it operated a fleet of 47 offshore rigs consisting of 32 semisubmersibles, 14 jack-ups, and 1 drillship.
Long Atheros Communications, Diamond Offshort Drilling in fund; no personal position