Investment Overview
The last four to five years have been extremely challenging for companies operating in the offshore drilling sector. In particular, company that over leveraged in good times have struggled to service debt and keep asset utilization robust even at relatively lower day rates.
However, amidst the crisis for the sector, there have been short-term trading opportunities. Just as an example, Diamond Offshore (DO) was trading at $13.74 on February 16, 2018. However, the stock subsequently trended higher by 51.4% to $20.8 by October 9, 2018. With reasons to be elaborated in