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Diamond Offshore Drilling Looks Like a Winner

by Sam Collins 09/22/09

Diamond Offshore Drilling (DO) -- This worldwide offshore oil and gas drilling contractor has formed a massive bottom known as a cup-and-handle -- a very bullish formation -- coupled with a gold cross (also bullish), and these make this chart look like a winner.

Diamond Offshore Drilling chart

But, in order for DO to make the final breakout, it must follow through on the penetration of the triple-top at $94.50.

The current round of profit-taking gives us an excellent opportunity to buy DO, because the rebound should take it to at least $110.

DO pays a dividend of $8 per share, giving it a dividend yield of 8.59%.

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