The world’s largest offshore driller, Transocean Ltd. (RIG), bagged a 455-day contract for its ultra-deepwater semisubmersible rig Sedco Express from a subsidiary of Noble Energy Inc. (NBL). The contract is expected to commence in the third quarter of 2010 after the expiry of Sedco’s current contract as well as completion of maintenance work and mobilization. Transocean is expecting approximately $241 million revenue from this contract.   A couple of weeks ago, Transocean's ultra-deepwater drillship Discoverer Clear Leader started its operations in the U.S. Gulf of Mexico under a five-year contract with Chevron Corp. (CVX). Clear Leader features Transocean’s patented dual-activity drilling technology designed to enable parallel drilling operations from a single derrick that saves time as well as money in deepwater well construction in comparison to conventional rigs.   We believe that the long-term fundamentals of the deepwater market continue to remain strong. With a number ...

For Immediate Release

Chicago, IL - May 14, 2009 - Zacks Equity Research picks Transocean Ltd. (RIG) as Bull of the Day and Gerdau S.A. (GGB) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Goldman Sachs (GS), JP Morgan Chase (JPM) and US Bancorp (USB).

Full analysis of all these stocks is available at: http://at.zacks.com/?id=2678

Bull of the Day

Transocean Ltd. (RIG) reported strong first-quarter 2009 results driven by solid contribution from the high-specification floaters and significant cost control measures. Transocean continues to generate significant cash flows supported by a $36 billion backlog, which is of a very high credit quality.

The company is deploying its ample cash flows to strengthen its balance sheet and invest in its newbuild program.

Our Buy recommendation remains unchanged, though we have lowered our estimates to reflect a relatively softer outlook for the mid-water

...

Transocean Ltd. (RIG) reported strong first-quarter 2009 results driven by solid contribution from the high-specification floaters and significant cost control measures. Transocean continues to generate significant cash flows supported by a $36 billion backlog, which is of a very high credit quality.

The company is deploying its ample cash flows to strengthen its balance sheet and invest in its newbuild program.

Our Buy recommendation remains unchanged, though we have lowered our estimates to reflect a relatively softer outlook for the mid-water and jack-up fleet. Our new 2009 and 2010 EPS estimates are $13.10 and $12.85, down from $14.26 and $14.95, respectively. Zacks Investment Research

Highlights include Chevron Corp. (CVX) and Marathon Oil Corp. (MRO), Schlumberger, Ltd. (SLB) and Transocean, Ltd. (RIG).Today's better-than-expected inventory report helps crude oil hang onto recent gains, even in the face of otherwise bearish news on the economy's front and equity market weakness. Given the continued weak demand and bloated inventories in the country, it remains to be seen if this favorable move on the inventories front, the first drop since February, can be sustained in the coming days.In its weekly inventory report released earlier today, the Energy Information Administration (EIA) reported that commercial crude oil stocks dropped a surprising 4.7 million barrels from the previous week. This contrasted with market expectations of 1.3 million barrels build during the week. Reduced imports offset the impact of the increased refining utilization rate.As the above EIA chart ...

Highlights include Exxon Mobil Corp. (XOM), Schlumberger, Ltd. (SLB), Transocean Ltd. (RIG), Nabors Industries Ltd. (NBR), Patterson-UTI Energy Inc. (PTEN), BJ Services Co. (BJS), XTO Energy Inc. (XTO) and Chesapeake Energy Corp. (CHK).Oil prices have moved up impressively in the recent past, up almost 18% in the last four weeks alone, and currently at the highest point in 2009 at close to $58 a barrel. The S&P 500 has gained around 11% in the same time frame, though its overall gain from the March lows is fairly impressive. The equity market rally reflects the growing optimistic narrative about the economic landscape, with sightings of 'green shoots' and favorable 'stress-test' outcomes. Today's favorable payroll numbers reinforce that outlook.But what accounts for the oil rally, how sustainable is it, and what are its investment implications going forward?There is ...

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

Albemarle Corp (ALB) AptarGroup Inc (ATR) Arch Coal Inc (ACI) Cape Bancorp Inc (CBNJ) Care Investment Trust Inc (CRE) Century Casinos Inc (CNTY) Ceradyne Inc (CRDN) China Sunergy Co Ltd (CSUN) CoBiz Financial Inc (COBZ) Coleman Cable Inc (CCIX) Community Bancorp (CBON) Compass Minerals International Inc (CMP) Courier Corp (CRRC) CryptoLogic Ltd (CRYP) Dover Corp (DOV) El Paso Electric Co (EE) Flamel Technologies SA (FLML) HLTH Corp (HLTH) Huntsman Corp (HUN) International Game Technology (IGT) INX Inc (INXI) Mercer International Inc (MERC) Mettler-Toledo International Inc (MTD) Natural Resource Partners LP (NRP) Portfolio Recovery Associates Inc (PRAA) Prospect Capital Corp (PSEC) Rockwood Holdings Inc (ROC) STAAR Surgical Co (...

Here are the stocks added to the Zacks #5 Rank ("strong sell") List today:

AerCap Holdings NV (AER) Ametek Inc (AME) AptarGroup Inc (ATR) CKE Restaurants Inc (CKR) Frontline Ltd (FRO) Greenhill & Co Inc (GHL) II-VI Inc (IIVI) International Game Technology (IGT) KVH Industries Inc (KVHI) LeapFrog Enterprises Inc (LF) NCR Corp (NCR) Old Dominion Freight Line (ODFL) Penn Virginia GP Holdings LP (PVG) Stanley Furniture Company Inc (STLY) Strattec Security Corp (STRT) SunPower Corp (SPWRA) Transocean Ltd (RIG) Twin Disc Inc (TWIN) View the entire Zacks #5 Rank List.

Zacks Investment Research

The Best Way to Play the Coming Oil Rebound

by David Fessler, Advisory Panelist

Crude oil is at a one month low, and lately it’s done nothing but drift lower and lower.

Sadly, that’s about to change.

It might seem counter to what the markets are telling us right now. Because the lack of global demand and strengthening U.S. dollar - that oil is priced in - are keeping prices depressed.

There seems to be no reason why oil prices should do anything but flat-line for the next few months. And it’s why most have missed the signs.

And if you’re hoping for a similar drop in gasoline, forget it. The summer driving season is just around the corner, and gasoline prices will likely rise (as they nearly always do) ahead of it.

The small increase in summer driving demand

...

Highlights include Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Transocean Ltd. (RIG), Pride International, Inc. (PDE) and Schlumberger Ltd. (SLB).Oil Inventories Close to Multi-Year HighsIn its weekly status report today, the Energy Information Administration (EIA) reported another build in inventories of crude oil and refined products. But the increase in inventories was less than expected, strengthening oil prices that had weakened in anticipation of a substantial build.Despite the relatively favorable report, the fact remains that crude oil stockpiles remain significantly above seasonal and historical levels. In fact, at 361.1 million barrels, current crude oil inventories are just one million barrels shy of their highest point since 1990.The agency reported that total commercial crude oil stocks increased by 1.7 million barrels from the preceding week, modestly below expectations. Current stocks are 14.3% above the year-earlier level and ...

Highlights include Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Transocean Ltd. (RIG), Diamond Offshore Drilling, Inc. (DO) and Pride, Inc. (PDE).Inventory Build Weighs on Oil PricesIn its weekly status report today, the Energy Information Administration (EIA) reported another build in inventories of crude oil and refined products, which is expected to weigh on oil prices in the coming days.The agency reported that total commercial crude oil stocks increased by 2.8 million barrels from the preceding week, significantly above expectations. This is the fourth consecutive week of inventory build, seriously denting growing optimism about the commodity's supply-demand picture.Current stocks are 12.6% above the comparable period last year. The supply cover continues inching up, with current stock levels sufficient for 25.4 days of supply -- significantly above the year-earlier level of 22.2 days....