McDermott International (MDR)

grmind (74.63) Submitted: 5/16/07 10:43 PM : Start Price: $35.61 MDR Score: 55.17

Each of MDR's three business segments is itself a great business, the diversity helps beta and management is terrific. Highest margins among the major players in its industry - 4x those of FLR. Twice the revenue of FWLR. Up 64% in past year and still projects to a 16 P/E next year. Three times as much cash ($806m) as debt ($267m) on its balance sheet. Just announced a blockbuster contract with Saudi ARAMCO to build 16 new oil platforms and modify 28 others. Value of ARAMCO contract not yet announced and thus not reflected on any valuation measures yet. The shorts are bailing. Go for it.

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