Wednesday, August 22, 2007

Adding to FMC Technologies (FTI) and National Oilwell Varco (NOV) for same reasons as CLB

TweetThis
Everything I just wrote about CLB, please feel free to apply to FTI/NOV. I established positions in all 3 when the fund was created, and now all 3 have traded essentially in a group and pulled back to their 50 day moving averages.

FTI 07 est: $4.31
FTI 08 est: $5.25
22% growth

At $86 it trades 20x 2007 estimates for a company that is growing 20-25% a year.
Also notice 08 estimates trend
90 days ago $5.03
30 days ago $5.08
7 days ago $5.26
(sound familiar?)

NOV 07 est: $7.17
NOV 08 est: $8.62
20% growth

At $112 it trades 15.6x 2007 estimates for a company growing 20-30% a year.
Also notice 08 estimates trend
90 days ago $7.25
60 days ago $7.40
7 days ago $8.62

Can you say 3 peas in a pod? CLB, NOV, FTI

Remember, each dollar that goes out of your pocket and into the gas tank is a dollar that needs to end up somewhere. It is going to integrated oil companies/countries that are paying these 3 companies to make their wells more efficient or make the search for new sources of crude easier.

While the market may mark them down if oil goes to $65 or heck $55 - the story stays the same. China and India are entering the 1st world and their populations use a tiny fraction of the energy 1st world countries do. If they even reach 30-40% of our energy usage in the next 5-10 years, that's a lot more energy sources we need to be finding.

No positions


Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com