Be Careful When Hunting For Value In Offshore Drilling

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Rupert Hargreaves
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For value hunters and contrarian investors alike, the offshore drilling sector is now one of the market's most attractive sectors. However, the big question that needs to be answered is, when should you buy in?

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Offshore drilling stocks tradings at a significant discount

Indeed, with companies like Rowan Companies PLC (NYSE:RDC), Transocean LTD (NYSE:RIG), Noble Energy, Inc. (NYSE:NBL) and ENSCO PLC (NYSE:ESV) all trading at a significant discount to book value, the margin of safety available is attractive, although there's reason to suggest that valuations could fall even further from current levels.

For example, consensus...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway.Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK.Rupert covers everything value investing for ValueWalk

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