Transocean (RIG) CEO Displays Incompetence and Disregard for Shareholder Value

"We're buying back stock as a chosen method to return excess cash to shareholders and which we think is the most efficient way to do it without taking a view on whether the stock is intrinsically overvalued or undervalued."
~Bob Long RIG CEO


This is absolutely incredible. An angry shareholder(rightfully so) questions RIG CEO Bob Long about the share repurchase program. The question begins at 27:45.

Caller is upset about rational for share repurchase program. Caller notes enormous insider selling while company is buying back shares.

"We're buying back stock as a chosen method to return excess cash to shareholders and which we think is the most efficient way to do it without taking a view on whether the stock is intrinsically overvalued or undervalued." ~Bob Long RIG CEO

That has to be on of the most ridiculous statements I"ve ever heard come from a CEO's mouth. By making such a statement he is CLEARLY not qualified to run a $23 billion company. Either that or he CLEARLY does not have any concern for the shareholders. My question is this: How can a CEO say that he going to buy back shares of the stock without regard to whether the stock is intrinsically overvalued or undervalued? If you feel the stock is overvalued then why is Sam's h*ll would you want to buy it back? All I can say is I"m glad I"m not a shareholder of RIG. I am very happy with Carl Thorne running ESV. Carl talks like he has a brain. Bob Long talks like has NO brain.

I put a big fat "X" on RIG.

You should too.

Disclaimer: I am neither long nor short RIG. I am long ESV.