OMNI.....
...a question on OMNI from ''Einstein'' - don't know if I should touch this one; but here is my opinion;
Primarily, their strength and upward movement against the trend has to speak volumes. We will soon see how this sell off compares to nov-dec and march, but OMNI is certainly showing accumulation and a steady appreciation in the face of a substantial downturn. They have been as strong as anyone lately, exposure in IBD certainly helped.
Fundamentally their niche as a ''seismic support service'' company is strong. Most of the seismic companies doing well with strong backlogs. The necessity of using seismic surveys in a low crude price enviroment in order to minimize costs has to bode well in the future. With 50% EPS growth going forward this is still very cheap. This (IMHO) is still the ground floor with lots of upside left both short and long term. Their annual report shows strong execution of their business plan, experienced hands on management that has made excellent acquisitions to complement their core business.
If they blowout Q2, I expect that to be the turning point. If crude moves upward, so much the better; but their strength in these ''down'' times can not be dismissed. Unfortunately, I do not see the possibilities of too many dips in which to add to my position. OMNI is a top 3 holding for me...so I don't plan to increase its % in my portfolio. Being a relatively new business combination and their small/micro-cap status; it is not without risk. It is my favorite currently.
If I was entering today, keyword being today; in small caps I like TCMS, OMNI, BTJ, HMAR; love the land drillers on pure value - UTI,PTEN,BDI; EVI and FGII in sevice and drillers MDCO & CDG in GOM/shallow; TDW in boats is a strong pure value, HLX doing very strong with upside growth & has both fab and boat presence. Equipment co's VRC & DRQ with deepwater strength are good buys on recent dip... at these levels it's hard to miss; deep drillers - don't see much risk, I like FLC best - lots of ultra-deep capacity coming online and RIG seems to have the most experience and best reputation for its crews- but is priciest.
The deep-sea area should see incredible growth; companies like SCSWF & CXIPY should be strong along with seismic equipment and service companies ike GGY, OYOG,SEI,PGO, VTS - this is not my area of comfort, but the more I research them, the more comfortable I am with their valuations. Thanks to Big Dog to the point towards GGY & CXIPY. This area might be a smart place to weight an oil sector portfolio towards; with their earnings and price resistance to crude swings... I'm thinking about consolidating to a smaller position in drilling stocks untill crude rebounds - and lke this area, I just feel like it's chasing the leader price-wise...but, the dips the last few days are an opportunity! |
