Rowan Companies, Inc. (NYSE:RDC)

CAPS Rating: 3 out of 5

The Company is a provider of international and domestic contract drilling services. It also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries.

Recs

2
Player Avatar blackstreet (< 20) Submitted: 10/19/2008 12:12:53 AM : Underperform Start Price: $19.65 RDC Score: +80.08

May be foolish questions1. How will $50 oil (in a year) impact its future growth potential?2. Considering the highly capital intensive industry, with credit tightening and cost of credit going up, wont it hit its earnings?

Member Avatar UltraContrarian (31.55) Submitted: 10/20/2008 10:13:45 PM
Recs: 0

My thoughts.1. If oil hits $50, back up the truck and buy oil-related stocks at 10-20 year lows. That would be one of the best and most obvious buying opportunities in history.2. Their liquidity is equal or better compared to most other drillers. So even if cost of credit negatively impacts them, they will still be able to take market share from competitors.I think RDC is the cheapest oil services company right now.

Featured Broker Partners


Advertisement