Hey, since Y'all so nice to Loosiana(my home state), I decided to end my long-time lurk and send everybody a Christmas present. James Wickland at Rauscher Pierce is a top oil analyst. On 12/16 he wrote:(just a few lines from a long,bullish report)
"Seasonally,oilfield service stocks get weak around this time virtually every year....The point is that this time of year represents a significant buying opportunity to investors with time horizons past Dec.31...Best Ideas: We would be buying the offshore drillers, especially the deepwater cos., including NE,FLC,SDC,ATW,and RIG."
(He also likes , in other areas, BJS,TBI, KEG,DPSI,TDGO,VTS; in land drillers, UTI --"with some of the greatest earnings leverage of the sector"-- BDI, and NBR. "TDW continues to be one of the cheapest, best managed plays in the group....In summary the recent weakness in the oilfield service sector is not surprising..seasonal in its effect, not fundamental...largely driven by outside forces with no basis in the sector. THERE IS NO QUESTION THAT THE CYCLE WILL RUN FOR SEVERAL MORE YEARS (emphasis mine). While multiples may contact through the cycle, the significantly higher earnings growth rate should still cause the sector to outpreform the broad market. We would use this seasonal weakness as a buying opportunity."
Merry Christmas to All--AND a Happy New Year!
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