Transocean Inc. (RIG-N)

11 of their cold-stacked rigs have been mothballed for a while but will return to operation soon.

The day rates on these offshore drilling rigs has been climbing well, so idle rigs will return to service. Is up sharply this month.

They report later today, but he's not interest in that, but rather the conference call about how tight the market is for deep-drilling rigs. He thinks it's a matter of when, not if, their rigs will be reactivated.

High debt, which they are paying down from free cashflow. Rig counts are up, a big milestone. Super-duper, high beta name to own when oil's not falling 5% in a day. Be strategic when to add. 12-ish% free cashflow yield, but see his Top Picks for a more compelling name.

Given the high spot price of oil now, you need to go to a high-beta oil name to capture a return.

It's the highest paid way to play oil.

A very choppy chart. Trade it. It's on the upswing now, so be ready to unload it.

It's stuck below $10. Flatlined for so long. Wouldn't buy it.

This is definitely on the whippy end of the spectrum for drillers. Ultimately, you really have to believe that energy is turning. He doesn’t see sufficient evidence to make that claim.

The whole energy complex is falling today. There are concerns that people priced in too much growth in some of the pro-growth policies Mr. Trump wants to push, which are going to come later and more diluted. However, this is a survivor in energy and is the go-to company when it comes to deep-water drilling. Energy prices are still too cheap, and over the long haul they are going to drift higher, and this company will be a beneficiary. You could use pullbacks like this to add to your position.

It is a rig company and so is suffering badly. It is bleeding cash right now. It is too early to get into the oil related sector and this is a risky type of company.

One issue with these companies is where does oil go? This was trading at some value below the value of their actual rigs out there. He believes oil will be higher over the longer-term and this is a good company. If you compare the volatility over the next little while, it will do well and you can see a reasonable rate of return on it. Probably worth buying at these levels.

These stocks have been hammered down because they are dependent on others. This is well-run and there has been some consolidation. Expects there will be some near-term negatives before you see the ultimate positives.