Lufkin Industries, Inc. (LUFK)

lubkenbj (53.22) Submitted: 6/17/08 5:07 PM : Start Price: $78.59 LUFK Score: -3.65

If you can hang on durring a bumpy ride this one will very possibly reward you for it hand over fist. I'm up 34% now and continue to keep the faith. This is another play on oil which I do not see heading below $125 any time soon. LUFK surpassed analyst estimates in April, and the price has since come back down to just after that earnings call. Oil companies are making record profits, and Lufkin is no exception. In fact, I think small companies like LUFK may be a better bet than the Exxon and COP giants because they have much more room to grow. Plus, I'm sticking to my belief that we're going to see a ramp up of consolidation as the giants target more and more revenue as oil climbs higher. LUFK could very well be bought. Especially since it has $0 debt and a profit margin 40% higher than the industry average!

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