Offshore drillers like Transocean (RIG), Seadrill (SDRL) and Noble (NE) have gotten pounded this year. Is it time to buy? Well, if not that, at least its time to become less bearish, say the folks at BMO Capital Markets, who upgraded the shares of Transocean, Seadrill, Diamond Offshore (DO), Ensco (ESV), Noble, Rowan (RDC) and Atwood Oceanics (ATW).
BloombergBMO Capital Markets’ Alan Laws and Peyton Mason explain why they see better times ahead of offshore-drilling stocks:
We are upgrading the offshore drillers to Market Perform from Underperform given what we view as a better risk/reward balance over next 6 to 12 months. We believe the stocks largely discount the weakness seen/expected in the industry in 2014/2015 with consensus estimates now reflecting the anticipated level of day rate reductions. Recent fixtures, while likely negotiated in 2013, suggest activity is resuming (albeit slowly), and we expect this to increase as ��learing house��rates are reached for producer cost containment. In other words, the potential for a surprise demand uptick now outweighs already price- in risks of further weakening, in our view. In our view, the largest risk to our upgrade today is being a bit early given what could be a longer drawn-out return to activity. That said we want to be positioned for the technical inflection like the land rigs in fall 2012. Stock downside appears limited with an already negative bias in expectations and ultimately investor fatigue with the thesis. Fundamental valuation metrics (PE and P/BV) also suggest trough levels. We think differentiation (vs. being viewed as one group) is likely to become more pronounced in a bounce, and we prefer ATW and ESV over peers. While other subsectors in Oil Services remain more attractive today, we believe value and contrarian investors should start kicking tires.
Hot Bank Stocks To Invest In 2015: Franklin Electric Co. Inc.(FELE)
Franklin Electric Co., Inc., together with its subsidiaries, engages in the design, manufacture, and distribution of groundwater and fuel pumping systems. It operates in two segments, Water Systems and Fueling Systems. The Water Systems segment provides motors, pumps, electronic controls, and related parts and equipment primarily for use in groundwater, wastewater, and fuel transfer applications. Its motors and pumps are used principally for pumping fresh water and wastewater in various residential, agricultural, and industrial applications. This segment also offers electronic drives and controls for the motors, which control functionality and provide protection from various hazards, such as electric surges, over-heating, or dry wells and tanks. The Fueling Systems segment provides pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in submersible fueling system applications. It also integrates and sells motors and electronic controls produced by the Water Systems segment. The company sells its products and related equipment to specialty distributors, original equipment manufacturers, industrial and petroleum equipment distributors, and oil and utility companies through its sales force and independent manufacturing representatives primarily in the United States, Europe, South Africa, Brazil, Mexico, and China. Franklin Electric Co., Inc. was founded in 1944 and is headquartered in Bluffton, Indiana.
Advisors' Opinion:- [By Seth Jayson]
Margins matter. The more Franklin Electric (Nasdaq: FELE ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Franklin Electric's competitive position could be.
Best Oil Service Companies To Own In Right Now: Uranerz Energy Corp (URZ)
Uranerz Energy Corporation (Uranerz), incorporated on May 26, 1999, is a uranium company focused on commercial in-situ recovery (ISR) uranium production. The Company is principally focused on the development of its properties in the Powder River Basin area into commercial ISR uranium mines. The Company operates in two segments: Arkose Mining Venture (Arkose) and the Company�� remaining operations. Its Wyoming properties, all in the Powder River Basin, totaling 87,414 acres include 100% owned properties, totaled 25,261 acres as of December 31, 2011, and properties of Arkose Mining Venture, in which it held an 81% interest, totaling 62,153 acres as of December 31, 2011. As of December 31, 2011, a total of 380 drill holes were completed on Powder River Basin properties, representing approximately 288,404 feet of drilling at an average depth of 755 feet per hole. The Arkose Mining Venture properties consist of unpatented mineral lode claims, state leases and fee (private) mineral leases.
As of December 31, 2011, the Company�� Powder River Basin properties include both its 100% owned properties and those properties included within the Arkose Mining Venture. These principal properties comprise in total approximately 87,414 acres and consist of a combination of federal mining claims, state mineral leases and private fee mineral leases. Its 100% owned properties in the Powder River Basin include Jane Dough, Collins Draw, North Rolling Pin, Hank, Nichols Ranch, Willow Creek, West North-Butte, East Nichols and North Nichols.
The Company had interests in several projects that lie within the Powder River Basin but outside of the project areas. These properties include the Verna Ann, Niles Ranch, Reno Creek, and South Reno Creek projects which cover approximately 1,694 acres. Within the Nichols Ranch Unit, Uranerz had 36 unpatented lode mining claims, two fee surface and mineral leases and one surface use agreement. Within the Hank Unit, it had 66 unpatented lode mining claims, two fe! e surface and mineral leases and one surface use agreement. The Hank Unit permit boundary encompasses approximately 2,250 acres.
The West North-Butte property covers approximately 1,960 acres of land and consists of 125 unpatented lode mining claims and one surface use agreement. The east portion of the West North-Butte property covers approximately 325 acres of land and is consists of 17 unpatented lode mining claims and one surface use agreement. The Willow Creek property covers approximately 220 acres of land and is consists of 11 unpatented lode mining claims and one surface use agreement.
The Arkose Mining Venture properties consist of unpatented lode mining claims, fee mineral leases, and state mineral leases. The land surface consists of private, federal and state lands. There are 2,641 unpatented lode mining claims included in the Arkose Property, which comprise 43,207 acres and 65 fee mineral leases and three state leases included in the Arkose Property which comprise 18,946 acres.
Advisors' Opinion:- [By Bryan Murphy]
If you listened to my bullish calls from December 27th and/or February 24th about Uranerz Energy Corp. (NYSEMKT:URZ), Uranium Resources, Inc. (NASDAQ:URRE), and Ur-Energy Inc. (NYSEMKT:URG), then congratulations - you're now up as much as 50%, depending on when you stepped into a trade, and which stock you chose. Now get out. See, as well as URZ and URG have done and are doing (URRE not so much), it looks like the short-term rally I first spotted a little more than a couple of months ago has fully run its course, and now these names are setting up a pullback.
Best Oil Service Companies To Own In Right Now: Goodrich Petroleum Corporation (GDP)
Goodrich Petroleum Corporation, an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas. The company holds interest in the Eagle Ford Shale Trend located in South Texas; the Haynesville Shale and Cotton Valley Taylor Sand in northwest Louisiana and East Texas; and the Tuscaloosa Marine Shale located in southwest Mississippi and southeast Louisiana. It owns working interests in 392 producing oil and natural gas wells located in 32 fields in 8 states. As of December 31, 2012, the company had estimated proved reserves of approximately 254.0 billion cubic feet of natural gas, 5.1 million barrels of crude oil or other liquid hydrocarbons (MMBbls) of natural gas liquids, and 8.1 MMBbls of oil and condensate. Goodrich Petroleum Corporation was founded in 1995 and is based in Houston, Texas.
Advisors' Opinion:- [By Jim Jubak]
Yes, the surprisingly strong 2.8% Gross Domestic Product (GDP) growth for the third quarter, reported on last Wednesday, raised fears that the economy was so strong that the Federal Reserve would begin to taper off its $85 billion in monthly mortgages and bond purchases sooner rather than later.
- [By Holly LaFon]
Twenty years ago, emerging markets represented only 19% of global gross domestic product (GDP); today they account for 36%1��nd are expected to increase even more in the next few years, as shown in Exhibit 1. Exhibit 2 shows how quickly GDP is growing in emerging markets, and it is expected to continue to grow at a faster rate than advanced economies.
- [By Staff at Investopedia.com]
Economic data releases are essential for a foreign exchange trader. These important economic indicators create volatility, and plenty of speculation always surrounds them. The United States' gross domestic product (GDP) is one such report. Not only do forex traders continue to monitor this important piece of economic data, they use it to either establish a new position or support a current one.
Best Oil Service Companies To Own In Right Now: Comverse Inc (CNSI)
Comverse, Inc. (CNS), incorporated on November 19, 1997, is a provider of software and systems enabling services for converged billing and active customer management, mobile Internet, and value-added services. The Company�� product portfolios includes value added services, billing and active customer management, and mobile Internet. The Company�� offerings include Comverse ONE, Comverse VAS, Comverse mobile Internet and Comverse global services.
The Company�� ONE deployment modes include Comverse ONE converged billing and active customer management, Comverse ONE real-time billing, Comverse ONE postpaid billing & active customer management, Comverse ONE online and converged charging, and create ONE of your own solutions. CNS is a wholly owned subsidiary of Comverse Technology, Inc.
Advisors' Opinion:- [By Lisa Levin]
Comverse (NASDAQ: CNSI) shares fell 2.50% to reach a new 52-week low of $25.75. Comverse's trailing-twelve-month profit margin is 2.86%.
Posted-In: 52-Week LowsNews Movers & Shakers Intraday Update Markets
Best Oil Service Companies To Own In Right Now: China Recycling Energy Corporation(CREG)
China Recycling Energy Corporation provides energy saving and recycling products and services in the People's Republic of China. The company engages in the design, sale, installation, lease, and operation of top gas recovery turbine systems (TRT) and other renewable energy products. It also builds cement low temperature heat power generator (CHPG) and waste gas power generator (WGPG) systems. The company, through a joint venture, Inner Mongolia Erdos TCH Energy Saving Development Co., Ltd, with Erdos Metallurgy Co., Ltd., recycles waste heat from Erdos Metallurgy Co.?s metal refining plants to generate power and steam. China Recycling Energy Corporation offers its products and services to enterprises in the iron and steel, cement, coking, and metallurgy industries. The company was formerly known as China Digital Wireless, Inc. and changed its name to China Recycling Energy Corporation in March 2007. The company was founded in 2004 and is based in Xi An City, the People?s R epublic of China.
Advisors' Opinion:- [By Roberto Pedone]
Another stock that's starting to move within range of triggering a near-term breakout trade is China Recycling Energy (CREG), which engages in the recycling energy business, providing energy savings and recycling products and services. This stock is off to a strong start in 2013, with shares up a whopping 166%.
If you take a look at the chart for China Recycling Energy, you'll notice that this stock recently formed a double bottom chart pattern at $1.67 to $1.66 a share. Following that bottom, shares of CREG have started to uptrend strong and move back above its 50-day moving average. That uptrend has now pushed shares of CREG within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in CREG if it manages to break out above some near-term overhead resistance levels at $2.80 to $2.85 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 95,671 shares. If that breakout triggers soon, then CREG will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $4 a share.
Traders can look to buy CREG off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.32 a share, or near more support at $2 a share. One can also buy CREG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
Best Oil Service Companies To Own In Right Now: The9 Limited(NCTY)
The9 Limited, together with its subsidiaries, engages in the development and operation of online games, and Internet and Website related businesses in the People?s Republic of China. The company offers online games, including MMORPGs, Web, and SNS games. As of December 31, 2010, it owned or had exclusive licenses to operate SUN, EA Sports FIFA Online 2, Atlantica, World of Fighter, Kingdom Heroes 2 Online, Winning Goal, ShenXianZhuan, Planetside 2, Free Realms, and Seoyugi games in China. The9 Limited also involves in the provision of Internet protocol television services and SMS services; Website solutions and advertising services, and mobile game platform; and licensing of its proprietary games to third parties. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By Rich Duprey]
Chinese online game developer�The9� (NASDAQ: NCTY ) �says that between April 22 and April 28, its chairman and CEO, Jun Zhu, purchased 200,000 of the company's American depositary shares on the open market, and he�intends to purchase�as much as $5 million�worth of the stock in total. He is also a co-founder of the company.
Best Oil Service Companies To Own In Right Now: Cyan Inc (CYNI)
Cyan, Inc., incorporated on October 25, 2006, has carrier-grade networking solutions that transform legacy networks into open, high-performance networks. The Company�� solutions include high-capacity, multi-layer switching and transport platforms, as well as a carrier-grade software-defined networking platform and applications. The Company�� solutions enable network operators to virtualize their networks, accelerate service delivery. The Company has designed its solutions to provide a range of applications, including business Ethernet, Wireless and broadband support services and cloud connectivity. The Company also offer high-capacity, multi-layer switching and transport platforms, known as its Cyan Z-Series, that have been designed to support the multiple concurrent technologies used in regional and metro networks, including both Ethernet-based services, as well as optical services.
The Company�� Z-Series platforms have been designed to transport traffic over network layer, utilizing both electrical and optical domains, to enable network operators to maximize network capacity at the lowest cost per bit. The Company�� customers range from service providers to high-performance data center and large, private network operators.
Advisors' Opinion:- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Tuesday’s session are Cyan Inc.(CYNI), Neurocrine Biosciences Inc.(NBIX) and SandRidge Energy Inc.(SD)
No comments:
Post a Comment