Valaris: A Cheap Stock With Strong Tailwinds

Summary

• Offshore oil production's decline has created a decade-long bear market, but I believe this is ending, leading to potential excess profits for companies like Valaris.
• Valaris offers significant value with high-spec assets, substantial backlog, and strong cash flow potential, making it a compelling investment despite recent share price declines.
• The investment thesis hinges on rising dayrates and new contracts, with substantial upside potential and downside protection through asset value and backlog.
• Despite short-term volatility and investor panic, I am confident in the long-term prospects of offshore services, supported by industry insiders' significant investments.