Carl Icahn’s Transocean Bet Should Pay Off Handsomely in 2015

Transocean comes in at number four in this week's countdown of the best European stocks for 2015. Transocean is an offshore driller based in Switzerland which owns the largest ultra-deepwater drilling fleet in the world. Carl Icahn has been active in this name, successfully pushing the company to pursue an $800 million cost cutting initiative, dividend increases, and the creation of an MLP. The latter enhances Transocean’s financial flexibility and allows the company to operate more efficiently and productively. But what I like most about this company is its dirt-cheap valuation. With shares down 50% over the past three months, the stock is now trading at less than half of its tangible book value. That means that if you sold of all of its assets right now, you'd get a quick 250% return on your investment. Not bad for a company with $3 billion in cash, ample free cash flow, and over $20 billion in revenue backlog. Don't let fear blind you from a spectacular opportunity that's staring you in the eyes.