Fast Money Traders Debate On Transocean

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The drilling space has been under a lot of pressure recently and traders are wondering if the space has reached a bottom. Jon Najarian and Jim Lebenthal spoke about Transocean LTD RIG on CNBC's Fast Money, debating on its future price movement.

Najarian is bullish on the stock because its price has declined around 60 percent and the daily rates for its fleet have declined only 10 percent. He added that the expected impairments, lower cash flows and a dividend cut are already priced in and the stock is in a good position to trade higher in 2015.

Lebenthal believes that the dividend cut is priced in fundamentally, but not psychologically. He explained by making a comparison with Seadrill Ltd SDRL, which traded significantly lower after it announced a dividend cut despite the fact that the market has been expecting the cut for a long time. He likes the company as a long-term investment, but he thinks that it will trade lower in the near term.

Posted In: CNBCFast MoneyMediaJim LebenthalJon Najarian
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