Following the success of the minion strategy described in The First Class of Minions, I have continued to use it to place speculative bets on companies which have a reasonable probability of turning around. These include the Oil & Gas (O&G) companies. The first batch of O&G minions are from the upstream Exploration & Production (E&P) companies, as they are the first to benefit from the rise in oil price. See The Missing Link Between Oil Price & O&G Profitability for more info. This group of minions (Interra, KrisEnergy and Ramba) is not particularly successful, with Ramba currently having paper loss of more than 50%.

Nevertheless, it has been 3 years since the oil price crashed in Jun 2014, and it is perhaps time to look further downstream along the O&G value chain, which brings me to the Offshore Support Vessel (OSV) companies. Many companies in this sector are in ...