Atwood Oceanics, Inc. (NYSE:ATW)

Socialpicks

While energy stocks are going through the roof and energy producers having a ball, Atwood Oceanic is my recommendation for a great stock to compliment your energy position.
During the gold rush days, not all prospectors struck it rich, some found gold and some didn't.. the people who were consistently getting rich were those who went out west and provided services to the minors such as banking, groceries & supples..
Atwood are the ones who build Oil barges and other oceanic drilling equipment and rather than take the risk of a dried up well, they simply lease their rigs to those who hit the jackpot. As oil prices rise, so does the price drillers are willing to pay to rent the drilling equipment, so Atwood enjoys the upside and in fact, have a backlog of orders - their barges are booked for the next 2 years!
That means oil can go down to $100 a barrel and Atwood will still be raking in the profits.
At 3 billion dollars in value and with a fair enough P/E of 20, Atwood seems like a good bet.

Dayrates increasing substantially this year. They were locked into much lower rates.

atw is going to rage as oil demand begins to outstrip supply

DCF 210.74 on 5/31/08. 5 yr PEG = 28

Through the roof. No oil to be found on land, must explore the sea!

6% gain today. Time to gather small dangerous gainers and hit big riggers and coal for a profitable breather.

This stock was picked by TMFConch for the 2008 Stockpicking Contest.

Target: $175+

Oil isn't going down anytime soon. With a new deep water rig coming sept 08, earnings will increase.

Smaller deepwater drilling contractor. Potential acquisition candidate. Business and backlog healthy with day rates rising along with profits.

All 28 picks #8+ , initiated on 5/18/08, are CAPS 5 star rated, were pos on 5/16/08, have consistant gains YTD, and are among the holdings of the five top CAPS rated players.

supply/demand

PBR going to utilize most deepwater drillers...that means prices will increase... a trend likely to continue for the forseeable future.

additionally, this is a prime candidate to be acquired at a significant premium.

I just think it will go

hoping to gain by TMF advice

Energy crisis

ROIC 24.2%

Equity Growth

5 yr 14.29%

Sales Growth

5 yr 22.02%

Eps Growth

5yr 34.04%

Margin of Safety $112.59

Great company, great growth rates, with in margin of safety, stock will go up.

Well, I've been holding real money shares in this (thankfully) for about a year and a half and I can't remember where the heck I got the recommendation (some newsletter). Anyway, they have a small fleet and thus some mechanical problem with one of their rigs causing downtime is really going to hurt them (risk). Nevertheless, it's not a common thing for a rig to go "down" and their medium-depth drilling opportunities (and thus pricing leverage) is excellent. I'm with the group that think oil of 105-120/barrel oil at the end of the year is likely...so a bit of a slump there...Nevertheless, this driller is nothing but in demand and going to make lots and lots of money. Don't wait on the sidelines....this isn't going to take some big, huge dunk in price. Maybe wait for a dip with the whole oil market (next couple of months) but then jump on 'cause this driller is smaller and thus provides greater appreciation than the competitors.

Just a great stock! Look at the numbers.I like this drilling co. more than RIG and DO. Started buying in December of 07 and it is one of the 5 stocks I buy every month looking long term. (5 to 8 years, maybe longer). The next 2 years will be a plus with contracts already signed for their 6 movable rigs but real profit seems to be in the 2010 to 2012 time frame where rates for these rigs should go through the roof.

I've read everything I can on this stock and can't find a downside unless OPEC drops prices to $20 per barrel.

I like this one