Noble Corp (NE)

$46.00 target price

This was the number one performer in Energy for a good while; not much has changed. It's PE is still looking good and it's got some upward momentum. Anyone else see a slowly recovering market in the last few weeks? This is a good buy for the long term.

Oil will resume price increase by August

1/19 in Oil & Gas Drilling -(78.0 @ B/A+)

5 Star, Small Cap- pays dividend

trading at 20% intrinsic value

High quality growth. Great return of value to shareholders. Top ratings all around.

As long as there is more demand for oil than supply, Noble will be a driller worth owning.

5 star S&P, tons of fools behind it, good P/E

This is the easiest I've had in months -- I just bought in on my real portfolio as well. Shares have plumetted over the past few weeks as oil has declined. This company just announced 30% profit growth, and promptly lost 20%. Low P/E, lower PEG, steady growth, good long term potential.

Even if the price of oil is cut in HALF, I still like this.

Between DO, RIG, ATW and NE, Noble has the lowest P/E with the largest fleet, internationally diversified and well managed, with a growing string of excellent growth quarters. Oil may go down shortly this year, then it is off to 120/barrel.

Deepwater drillers have great earnings outlooks over the next few years.

Supply of oil is expected to peak - leading to higher oil prices (assuming demand is still constant) and increased activity for oil exploration and drillers. Noble is well positioned to take advantage with its fleet of deep sea drillers and submersibles.

energy ibd

Fair Value: $45

Noble Corp. is an old-line oil and gas driller with a long history of quality management and strong capital disciplines. The company operates in shallow and deeper water - and notably, NE avoided the Gulf of Mexico region where jack up day rates are under particular pressure given slack shallow-water rig capacity due to lower demand and new rig supply.

We are attracted to Noble for its exceptional balance sheet strength and attendant financial flexibility which could allow management to capitalize on unstable conditions in the energy market by way of acquisitions, etc. However, the company sees ample opportunity for organic growth - but has made clear its intention to return cash to shareholders if such opportunities don't fully materialize. In fact, share buybacks and steady-state cap-ex accounted for only 50% of 2008’s depressed cash flow. Debt represents only 12% of capital - and the company has indicated it would be comfortable operating at debt levels in the mid-20%s should the company need to deploy additional capital. The company has done an excellent job of containing costs and has been able to translate improved overall day rates into continued attractive operating margins.

This is a long-term (disciplined asset) growth and re-valuation story. NE has underperformed its peer group leaving it trading at a very attractive relative valuation. Our initial fair value of $45 represents a conservative 3.5 times sales (Street target prices range to $60); and the stock now sports V-ROE and V-ROC ratios of 4.8 and 3.3, respectively. Insiders own 1.9% of the stock which is not inconsiderable considering NE’s $9.0B market cap. We enthusiastically rate this stock BUY and expect to be raising our FV in the near future as earnings visibility reflects improved commodity pricing.

As the demand for oil increases, deep water drilling becomes increasingly important. Noble will be able to take advantage of this trend because of their expertise in deep water drilling.

Great cash flow, recent DCF eval shows this is very undervalued

Involved in oil, gas, refineries, drilling, need I say more?

Oil at $110 per barrel....ridiculous!