- Stock rallies after management points to a likely industry recovery starting in H2/2021. Discussing comments made on the company's Q3 conference call on Tuesday.
- Transocean still has to deal with the fallout from recent debt exchange transactions as large noteholders have filed a lawsuit and provided notices of default for certain bonds.
- In addition, the company needs to regain timely compliance with the NYSE's continued listing requirements to avoid violating additional bond covenants.
- Transocean needs a massive industry recovery to successfully deal with medium-term debt maturities after current cash reserves will have to be used for massive capex requirements next year.
- Given material short- and medium-term risks, conservative investors should continue to avoid the shares.
For further details see:
Transocean - Management Expresses Unbroken Optimism Despite Major Challenges