Source: MarineTraffic Picture: Semi-submersible Ensco 8503
Introduction
Ensco Rowan (ESV) continues to be one of my long-term investments in the offshore drilling sector with Transocean (RIG). However, I have significantly reduced my position in this company and increased my short-term trading position in the past two years. For Ensco, my decision to cut my holding drastically was based on two 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) which severely weakened the