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IBDvalueinvestin (99.66)

Offshore Drillers profits going down daily, eps estimates being revised downward

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June 09, 2010 – Comments (2) | RELATED TICKERS: OII , BP

on a daily basis, today its OII

Wunderlich is lowering their tgt to $45 from $65 after OII tentatively issued lower 2010 EPS guidance due to the recent six-month deepwater drilling moratorium, which could change (along with their ests) based on the length of the suspension. Additionally, there continues to be uncertainty of shallow water activity in the Gulf of Mexico. Despite the fact the co works throughout the world, the slowdown causes reduced earnings and EBITDA in 2010 and likely 2011.

 

On the BP side, its sliding on worries its div. will be cut.

2 Comments – Post Your Own

#1) On June 09, 2010 at 8:15 AM, IBDvalueinvestin (99.66) wrote:

APC already following suit with OII and heading down, RIG looks to follow, and would not be surprised to see DO go down again after Goldman downgrade yesterday.

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#2) On June 09, 2010 at 11:05 AM, cthomas1017 (98.78) wrote:

It's a great time to be a contrarian!!!  

Full disclosure: Sitting on the sidelines mostly in cash waiting for news to drive a couple of these oil related stocks another 5-10% lower. Then pouncing. :)  If it doesn't go lower, then "oh well, next."

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