Friday, October 1, 2010

Old News Becomes New Again for Transocean LTD (NYSE:RIG)

New York- Transocean shares have rocketed in September up 18.44% but the stock is still down 32% from its 52 week high a long investor would argue. The old news involves the indemnification of Transocean regarding the BP oil spill. Transocean was the party in charge of the rig, when the Macondo Rig sunk to the bottom of the ocean and the well began gushing on April 20th. The well finally stopped gushing on July 15. What is new again is the question of will Transocean be indemnified?

Kenneth Austin of Moody's stated in late August "While no one knows what that impact will be [of Macondo], it could be significant” for Transocean." Transocean is indemnified but there are always reasons why a contract is broken between parties.

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