Tidewater, Inc. (TDW)

Book value 45.8; So I am aiming to get in at 45.7. It is offering a 2.2% yield which is respectable. They will have no issue to pay out to the shareholders. Many people fear that when we move into alternative fuels we will not need these shipping companies, but judging by the expenditures made by Exxon, BP and the list rolls on. These shipping companies may still have life yet. We will still have another solid five years of needing oil, due to vehicle design, we need the fuel sorce to design a vehicle to run that fuel source and typically it is between 5-7 years to develop a vehicle. Fuel is still needed and this company is undervalued.

cyclical in nature, but i will give it a shot at the risk of calling this outperform possibly on top of its cycle. chance worth taking though.

Amazing fundamentals: high margins, adequate cash cushion, manageable debt. Also part of an industry with a lot of potential.

Passes value screen. P/E 6.6, D/E 0.1, PEG 0.15, Current Ratio 3.09.

Passes AAII Graham Enterprising screen

contr screen

Current 45.21 Sept 17 09. Limit 43.00

p/e = 6
peg 0.2

Tidewater has fantastic fundamentals, with virtually no debt, good earnings growth, and solid return on investment. Combine those with a price below book value, and I see this company as a steal.

Oil services will be a strong industry in the years to come, and offshore services in particular will see strong growth as the price of oil continues to recover. BP's big strike in the Gulf of Mexico definitely won't hurt business, either.

This company provides transportation (Supply vessels) to offshore oil and gas exploration sites. It has fairly good P/E (<10). This company is growing. P/S and P/B are decent. With no debt, this company offers 2.3% dividend. Additionally, it has low payout ratio and a current ratio of 3 which is good. Return on Equity is 17% which is good. It is likely to outperform as oil and gas prices recover.

very low PEG (.17)

See pitch by jrenfree.

shipping, oil industry

Great Value Stock. Fundamentals looking good for the company right now. Limited Debt. Large shareholder equity.

Improving oil prices and demand should drive the price of this stock back up.

Considering Book value, earnings, and market cap...this should beat the market in 5 years.

Recommended by Intrepid Capital fund.

Oil and gas will continue to rise in prices. Oil service providers will benefit.

Why does the market hate oil service companies so much? In my opinion, these are they way to play oil, as they are relatively shielded from the actual price of crude. Each time I run a value screen, a couple pop up. This one comes up the most often, and is therefore my favorite. It generates tons of cash, pays a steady dividend, and is conservatively financed. We need to get away from oil someday soon, but it won't happen overnight.

Why TDW is the right stock:

Their fundamentals are great, almost too many high points to list. Highlights are almost no debt, great margin compaired to their industy, tons of cash on hand and even more being generated. Hight insider ownership with an insider increasing their position. A nice dividend that was recently increased and a conservative payout ratio.

Why now is the right time:

I think the energy sector as a whole is poised for a rebound and should provide a nice tailwind for this company. Valuation metrics for TDW are lower than their industy average. They have posted positive earnings suprises for the last 4 quarters straight. Average analyst eps estimate was lowered 30 days ago only to be raised back up this week to higher than it was 90 days ago.

Add it all up and you get a company with stronger fundamentals than its industry and lower valuations. A history of beating expectations with expectations currently rising. A foreseeable industry tailwind.

In my book that all equals a stock that has the legs and the room to break from the pack.