Another one worth considering is McDermott International Inc. (MDR:NYSE). It missed badly over the past few quarters. If you’re a technical analyst don’t even look at the chart. After one of its recent quarters, one analyst said that McDermott needs a McDo-over. But I love to see stuff like that when I’m recommending stocks, where the whole world has given up on a name. I think that’s what happened with McDermott.

McDermott builds the platforms for offshore oil companies. These are some of the biggest manmade structures in the world—bigger than the Empire State Building. This is a 100% pure play on this industry. Offshore drilling is going to see a massive boom. All the majors are drilling right now, spending a lot of their budgets on offshore drilling in Japan, Thailand, Brazil, China, even the U.S. The U.S. has quietly been opening up more of the deeper areas in the Gulf of Mexico and even Alaska.

The stock is trading at just 10 times earnings now because it got crushed over the last couple of quarters. But insiders are buying, which is something I like to see when a stock goes down. Goldman says the offshore drilling industry is going to grow 40% annually over the next couple of years. I like both the growth and value components in this name. I love that everybody hates the stock right now. Even if it comes out with bad news, you shouldn’t really see the stock get crushed. One good quarter will push it up at least 30% in the short term. Longer term, the stock could easily double from these levels as capex toward offshore drilling continues to hit record highs.