Cramer Likes Transocean (RIG), Especially In This Environment
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Last night on Mad Money, Cramer talked about companies with great visibility and included in this was
Transocean (NYSE: RIG).
Cramer said Transocean is "a principal beneficiary" of high oil rates and said it can get great prices for its deepwater rigs. Transocean has already locked in high rates for years to come.
He said, every time oil falls, the stock gets slammed, but that doesn't make sense because its contracts are "ironclad."
Also, Transocean just completed its acquisition of its biggest competitor, GlobalSantaFe, which should increase its negotiating power, enabling it to get better prices.
Cramer expects Transocean's pricing power to stay strong over the next five years. And, the worst thing Cramer had to say about Transocean is it has "boring profits."
As in the case of Medco Health (NYSE: MHS), Transocean has great earnings visibility and Cramer thinks they are both ripe for buys.
RIG is up 2.39% in the pre-market hours, likely because of the 'Cramer Effect.'
Transocean (NYSE: RIG).
Cramer said Transocean is "a principal beneficiary" of high oil rates and said it can get great prices for its deepwater rigs. Transocean has already locked in high rates for years to come.
He said, every time oil falls, the stock gets slammed, but that doesn't make sense because its contracts are "ironclad."
Also, Transocean just completed its acquisition of its biggest competitor, GlobalSantaFe, which should increase its negotiating power, enabling it to get better prices.
Cramer expects Transocean's pricing power to stay strong over the next five years. And, the worst thing Cramer had to say about Transocean is it has "boring profits."
As in the case of Medco Health (NYSE: MHS), Transocean has great earnings visibility and Cramer thinks they are both ripe for buys.
RIG is up 2.39% in the pre-market hours, likely because of the 'Cramer Effect.'
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