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Transaction Details

Company: Transocean
Yahoo Beta:0.88
Industry:Oil & gas drilling & exploration

Company Description:  Transocean Ltd. provides equipment and staffing for offshore oil and gas drilling and exploration globally. The company particularly focuses on deep and ultra deep sites. The company is based in Switzerland.

Purchase Date:14 Feb 2011 Sale Date:31 Aug 2011
Purchase Price:$78.86 Sale Price:$55.70
  --Split Adjusted:$78.86  --Split Adjusted:$55.70
Shares Purchased:33 Shares Sold:33
  --Split Adjusted:33  --Split Adjusted:33
Transaction Fee:$80.35 Transaction Fee:$80.39
Price Range (6 Months Prior):    Price Range (6 Months After):    
High$82.94 High$0.00
Date18 Jan 2011 Date01 Mar 1996
Low$50.65 Low$0.00
Date26 Aug 2010 Date01 Mar 1996
S&P (Purchase Date):$1,330.01 S&P (Sale Date):$1,224.39

Timing:  We bought near the six month high.
Reason:  We believe that Transocean's price has been depressed by excessive concern about liability in the Deepwater Horizon oil spill in the Gulf of Mexico. We believe the market is overestimating the extent of the liability. With the largest offshore drilling fleet in the industry, and its expertise in deep and ultra deep water drilling, we believe that Transocean is well positioned to take advantage of increased D&E as oil prices recover.

Reason:  This company has suffered a major loss since we first acquired it, and it has been trading in a downtrend for the last 2 quarters. Additionally it is nearing the low it hit during the BP Oil spill. It doesn't appear that the company has strong prospects for growth in the near future. If we wish to be exposed to oil, there are better companies in which we could invest. It's overvalued based upon its PEG of 4.81. The net income has declined 77% since 2008; the ROE is -0.39% and the ROA is 3%.

S&P Gain: -7.94 % Annualized Gain: -14.14%
Stock Gain: -29.37 % Annualized Gain: -47.32%

Net Holding Return ($): $-872.88
Net Holding Return (%): -32.54 %