Tuesday, February 19, 2008

Vince Farrell of Scotsman Capital-Verbatim

From: vince farrell
Sent: Tuesday, February 19, 2008 8:52 AM


It's amazing what experiences some people have had. A friend emailed me to say that she has first-hand knowledge that General Galliteri, the head Argetinian honcho who launched the Falkland invasion, was on the phone with President Reagen for three hours as Reagan tried to talk him out of the stupid decision he was making. The good General was drunk the whole time. Hard to believe that such insanity exists and that people lose their lives because of it.
I wrote about Transocean and Rowan Drilling last week. RIG announced the sale of three commodity type jack-up rigs to Hercules Offshore for $320 million and a contract for a deepwater drillship at the rate of $510,000 a day. Both pieces of news are welcome. The sale of the jack-ups is an indicator of strong demand for this type of equipment and that the bearish sentiment around the Gulf of Mexico is overdone, so I repeat my positive view on RDC which has a lot of equipment in the Gulf. RIG recently had a big merger and paid out a $33 a share special dividend and this sale allows them to accelerate the debt paydown that is underway. RIG remains my favoritein this group.
More later. Need to get to the studio for "The Call" at 11 AM eastern.

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