Deepwater concerns; VRC a gift from the gods & THE BOUNCE !
If anyone ever listens to anything I ever say; listen and do this one thing....
If anyone has any concerns about Deepwater, onshore drilling (the story will be nat gas, gas, gas !) or the near term future; simply spend a few days researching the E&P stocks. Read everything you can on the majors, but especially on the small and mid-size independants. The recent offshore Lease sales were strong and had very strong $ bids. Deepwater has only seen the tip of the Iceberg. There is tremendous pent up demand for both GOM Deepwater and domestic land drilling where Natural Gas will be very, very strong.
Also; in researching this area; you will see 1 major theme keep popping up. That theme is "SEISMIC." Old line drillers who used little now accept that it is a necessity. The cost efficiencies are a prerequesite to surviving tough times with reduced spreads. Companies like CLB with proprietary enhancement techniques have a very bright future.
As far as the future for energy use; never in our history has the world been more poised for a dramatic spike up in energy demand. The demand for crude Oil is like a coiled spring; undeniably contracted presently; but let the sleeping giant of Japan awaken; China will be huge and add the emerging nations and the future for crude oil demand is very bright indeed. "When" is the only question. With the sense of urgency displayed by the worlds leaders in addressing economic problems; I don't think the wait will be as long as expected...
The no-brainer plays are the deepwater niches with companies like CXIPY SCSWF CDIS DRQ VRC PGO VTS and the drillers, RIG DO NE and the high leverage of FLC being the ''big'' play here...
Once again; if you don't buy here - when do you buy ?
....PS CSCO +$3, LU +$ 2 7/8, PMCS + $1 1/4, VTSS +$2 1/8 -- so much for the sky is falling.... strong bounce in the oilpatch as well.
PSS: buy VRC at or under $7; margin it to the max and start shopping for a lake retreat, new GMC Denali - Lincoln Navigator etc. Yes; Varco's selloff is a gift from the oilpatch God's... if you ever margin anything; margin VRC here & now !
Articwarrior - "BINGO" - playing the bounce & putting the profits into Oil stocks - good man; doing the same with CSCO LU etc. here...buying my VRC for free...
Fred; ...I don't know anything about NORT, but GW yesterday& CHK were $1+ plays that may be very interesting...
***anyone else notice the ''game'' on Wall Strret currently; it's a game of ''chicken'' with the ''pain game.'' There is a huge pent up buying demand at these price levels. The Traders are playing a game of chicken here, seeing how much pain they can take, before someone blinks and starts buying... Notice the wave of downgrades, the capitulation; then the swoop in by the traders scooping up all that Motorola, Lucent and Cisco today ! Not that hard to play... The only prerequesite is that one must be firmly based in reality here; as the sky is NOT falling... |
