Based on the narrowing of bifurcation rates, FBR said they see Noble Corporation (NYSE:NE) outperforming their peers over the next month or so.
FBR said, "We are adding NE to FBR Top Picks, replacing FMC Technologies (NYSE:FTI). We expect the stock to outperform its peers in the next several weeks, based on our expectation for the bifurcation of rates to narrow as the jackup market builds momentum and lower-quality rigs go back to work. We also believe the overreaction to Noble's November fleet status report provides an attractive entry point for NE. Lastly, Noble has a strong backlog and ample liquidity to grow even after adding four modern deepwater units in the Bully and Globetrotter rigs."
FBR maintains their "Outperform" rating on Noble, also adding them to their Top Picks List.
Noble was trading today at $35.08, gaining $0.22, or 0.63 percent as of 12:29 PM EST. FBR has a price target of $45 on them raising it from $42.
Not worried about NE and will be buying NE beginning today and all the next three weeks to the end of the year. Strangely undervalued NE, and traders and reporters are beginning to see this odd gift as of late. NE is in the process of moving and using its fleet outside the Gulf for very profitable use elsewhere South America, and all over the world. Transocean's (RIG) price share has skyrocketed to $72, while it was not NE's rig involved in the spill, rather it was Transocean's rig. So NE has a lot of catching up to do in Stock pricing, say 25% percent just to catch up to messy RIG. Again, Transocean is the company that owned the BP RIG that blew up in the Gulf of Mexico, and is involved in thousands of lawsuits. NE on the other hand was not at all involved in the Gulf mess, and has substantially more assets outside the Gulf (about 83% of its rig placements are outside the Gulf).
ReplyDeleteFriday's quote (one business day ago) about NE Noble Corp. in Motley Fool by a very smart reporter read as follows, putting the spotlight on NE: "the stock could easily recover much or all of this year's loss by the end of 2011 and rise at least 90% through 2016. That's because drilling has resumed in the Gulf and Noble has a contract backlog worth up to $10 billion, so earnings should dramatically improve. Indeed, analysts project the company's five-year growth rate will approach 14% annually.
Importantly, Noble has an especially well-maintained rig fleet, high customer satisfaction ratings and an excellent safety record. After a disaster like the Gulf oil spill, its strong reputation will mean a lot."
NE will prove a very good investment by February 2011. And with oil at about $90, for sure we see NE at over $43 by mid to late February 2011. Good quick money on NE, a great gift of a company. Stockaccumulator USA