Out Fox The $treet

Summary Ocean Rig owns an attractive fleet of modern, preferred rigs. The company trades at a fraction of book value, despite remaining extremely profitable. The recent stock action provides an ideal entry point around $7. The offshore drilling market is setting up a unique scenario of a bifurcated rig market and correspondingly flipped stock valuations. E&P firms are increasingly demanding new rigs with modern capabilities giving an advantage to the newer fleets, yet the stock market isn't placing the modern fleet owners in the same positive light. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

It seems that just about every analyst can't wait to forecast a potential plunge in deepwater and offshore drillers. The latest is an analyst call out of Barclays that the general offshore sector, including the deepwater drillers, will take a hit. Only a few weeks back, the focus was on the difference between the legacy drillers and the modern drillers . The latest report from Barclays brought a few more firms into focus, including Atwood Oceanics ( NYSE: ATW     ) , Rowan ( NYSE: RDC     ) , and a big hit to Diamond Offshore Drilling Read full article here . Disclosure: Long ATW. Please read the disclaimer page for details.

Seadrill Limited ( NYSE: SDRL     ) plunged over 6% when the company announced a quarterly dividend hike by $0.04 to $0.95, or 4.3%. Typically a dividend hike is greeted with positive stock returns, but in this case investors appear more concerned by other issues in the sector. Seadrill is a global leader in offshore drilling with a fleet of modern, high-specification rigs. The company is a serial deal maker with a 77.5% ownership of Seadrill Partners ( NYSE: SDLP     ) and a recent deal to acquire the majority of Sevan Drilling. The addition of Sevan during the quarter added operating costs that reduced the bottom line. Read the full article here . Disclosure: Long ATW. Please review the disclaimer page for more details.