ESV - EnscoRowan: The Chickens Have Come Home To Roost
Ensco PLC - Semi-submersible Ensco 5005
Investment Thesis
The London-based EnscoRowan (ESV) continues to be one of my long-term investments in the offshore drilling sector with Transocean (RIG).
However, I have significantly decreased my long-term position in this company and increased my short-term trading position considerably in the past two years. I based my decision to cut my Ensco holding drastically on two significant new developments.
First, I believe Ensco made a huge and costly mistake by merging with Atwood Oceanics (I was strongly opposed to the deal at the time),