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.
$53.45 (06/15/08)
