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Diamond Offshore Drilling - A Gutsy Trade

Diamond Offshore Drilling Inc. (NYSE:DO) provides contract drilling services worldwide to independent oil and gas companies, and government-owned oil companies for the floater market, including ultra-deepwater, deepwater, and mid-water.

DO has been lagging the Oil & Gas subindustry since August 2016, primarily due to the cancellation of the Ocean Valor contract with Petrobras - Petroleo Brasileiro S.A. (NYSE:PBR), and also because the market for offshore drilling is oversupplied.

It should be noted that DO has an ongoing legal battle with Petrobras, with the court recently upholding an injunction regarding the Ocean Valor contract. But Petrobras still can appeal the ruling in the Superior Court of Justice.

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by Steve Auger