By: Jon Costello
Valaris (VAL) has been my largest holding since April this year (alongside Calumet). I bought the shares at an average price of $31, and they have risen to $50. The company is now widely recognized as the go-to alternative among offshore drillers because of its conservative balance sheet, diversified fleet, and exposure to the industry’s bullish macro outlook.
I still like VAL’s prospects and plan to hold the shares for years. However, I’ve been closely watching Transocean (RIG). I bought shares in April and May of this year, though my RIG position is much smaller than that of VAL.
Despite VAL’s impressive performance, I believe the time has come to transfer out of VAL and into RIG. In recent days, I switched a significant portion of my VAL holdings into RIG.