Tidewater, Inc. (NYSE:TDW)

CAPS Rating: 3 out of 5

The Company provides offshore supply vessels and marine support services to the offshore energy industry through the operation of a fleet of offshore marine service vessels.


Player Avatar pinestholdings (< 20) Submitted: 5/24/2010 7:20:38 PM : Outperform Start Price: $36.69 TDW Score: -106.82

TDW is a classic value play. Book value of $45/share. Selling for $41/share. One of the most conservative accounting companies in the market in terms of accounting risk. Rock solid dividend of about 3%, and this with oil prices in the bottom. The gulf of mexico explosion and halt to offshore drilling will have one big winner: oil transport companies bringing in foreign oil. You are getting a great company at a price less than book value, and it just moved below its 52-week low. Buy a decent amount at $41, then sell puts at $35 (which is a 6% or so dividend yield) as the puts are way overpriced right now as all the institutions hedge their risk. If you hit the puts, you've averaged down your cost to about $37.40 and you can collect a very nice divdend until the market regains its senses. Love this stock at this price!

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