SUBCY and PGN to be Added to the SMA Portfolio

By on September 11, 2014

Interactive Brokers PortfolioAnalystAs mentioned in a previous post, I’ve been monitoring the depressed offshore drilling sector for the past several months. I’ve already taken stakes in my discretionary account with investments in Diamond Offshore (DO), Ensco (ESV), Noble (NE), Paragon Offshore (PGN), Transocean (RIG), Seadrill (SDRL), and Subsea 7 (SUBCY). I have a bid open on Atwood Oceanics (ATW) near its 52 week low.

Approximately 2.9% of the SMA Portfolio is currently in cash. I will be placing bids on Paragon Offshore (PGN) and Subsea 7 (SUBCY), splitting the cash balance between the two companies. Both stocks trade at substantial discounts to book value and have significant upside when offshore drilling fundamentals improve. There is a risk that the industry remains in the doldrums for several years.

One Comment

  1. Barron Maestro

    September 14, 2014 at 11:13 am

    PGN was purchased at $7.33 and SUBCY at $14.64.

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