Here's Why Diamond Offshore Drilling Inc Stock Was Up 15% Last Month While Its Competitors Fell
While almost all of its competitors saw their stock prices fall in October, Diamond Offshore Drilling Inc (NYSE: DO) shares ended the month 15.4% higher than when it began. Along with Rowan Companies, Diamond Offshore was a rare offshore driller that saw its stock price rise in October, while a few even fell by almost double digits.
What separated Diamond Offshore from most of its peers last month? Frankly, it looks like its stock price largely tracked with Brent crude prices last month, which jumped a remarkable 7.6% on inventory-tightening concerns. Let's take a closer look at Diamond Offshore, and why the market seemed to value it differently than many of its peers in recent months.
Over the past several quarters, Diamond Offshore steadily has managed to operate profitably, even as many of its peers struggled mightily. This has been largely a product of a relatively robust backlog, valued at $2.6 billion at the end of the third quarter.
Source: Fool.com
