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Strategies & Market Trends : Value Investing

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To: benbuffett who wrote (50450)	12/29/2012 6:03:20 PM
From: Spekulatius	Read Replies (3) of 78774

I have been watching NOV as well for a possible entry. My target for a first lot is in the low 60's, which is about 11x 2012 earnings. Due to problems in the E&P sector, in particular with land drilling, I have some doubt about the 6.5$ earning consensus for NOV in 2013. That said, I think NOV is a great company in it's space, since they dominate so many markets segments. I have been looking at competitor WFT as well, which has currently accounting issues (they have a March 2013 deadline to get their financial statement filed and if they don't meet that, it could constitute a default of their debt). WFT has a lot of debt and trades at 1.5x EV/Sales, which is not that huge of a discount to NOV 1.1x (NOV has very little debt). NOV also has better business mix, margins and no accounting issues of course, so I think it is the better bet vis a vis WFT.

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