NEW YORK (TheStreet) -- Shares of Diamond Offshore Drilling (DO) closed down 5.74% to $34.72 today. James Tisch, CEO of Loews Corp. (L) and chairman of its offshore driller unit, said he is optimistic about the prospects of the unit after the business's share price plunged, Bloomberg reports.
"Trouble is opportunity," Tisch said today in a conference call held by New York-based Loews, citing disruption in the industry, according to Bloomberg. "Hopefully, Diamond will have occasion to grow its fleet by purchasing rigs at a discount."
The Houston-based business has declined over 30% this year amid lower demand and an oncoming glut of newly built deepwater rigs. Third quarter net income fell 44% to about $53 million, the company said last month as it announced plans to scrap six rigs.
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TheStreet Ratings team rates DIAMOND OFFSHRE DRILLING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMOND OFFSHRE DRILLING INC (DO) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."