Tidewater, Inc. (NYSE:TDW)

This account tracks the less exciting stocks from my watch list - companies that are easy to understand with clean balance sheets and good track records in relatively straight-forward industries.

Yes, it very well may be that deep water rig counts in the Gulf of Mexico will decline, but bet that rig owners are filling the boats to check their infrastructure and operations in light of the BP disaster. P/E of 8.7.

Whatever laws change, the costs will go up for oil production companies because they will have to pay for more design/ engineering and production support services. TDW is well-positioned to be the main production support service provider.

Original pitch from "11 O'Clock Stock" series.

http://www.fool.com/investing/general/2010/09/01/todays-buy-opportunity-tidewater.aspx

To see more about the series, watch this video from co-founder Tom Gardner:

http://www.fool.com/investing/general/2010/07/22/introducing-11-oclock-stock.aspx

Value play since stock is down due to gulf spill. Strong dividend, low debt and good profit margins.

price is below book value

Bottom Fishing from Oil Patch report.

Bottom-feeding on the offshore oil services industry. Not everyone of them will do a Deepwater Doo Doo and we still gots to have oil! This one is trading under book value with little debt and a steady 2.4% yield.

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!

Oil prices will eventually rise as the global economy heats up. Off-shore drilling (and supporting companies) will improve. Tidewater is number one and has no significant debt.

Great financials

Reasonable earnings multiple both in terms of LTM and projected earnings; strong book value provides more support; if oil prices stay around current levels its a solid investment and if they increase it becomes even better as GOM exploration will increase which will lead to more supply and crew boat demand

Cheap, not much on the growth end.

Cheap value.

It can't possibly stay this cheap forever.

My graham pick

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.

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

p/e = 6
peg 0.2