"Atwood Oceanics Inc. (NYSE: ATW) is our bet on the exploding demand for offshore oil drilling rigs," says international investment expert Nick Vardy.

The editor of Global Bull Market Alert explains, "Although it's had a big run recently, the stock is as technically oversold as it was when global markets bottomed in mid-March." Here, he outlines why he believe the stock will perform strongly in the coming months.

"Atwood Oceanics Inc. engages in the offshore drilling of oil and gas wells worldwide. It operates eight offshore mobile drilling units located in six regions of the world, including offshore Southeast Asia, Africa, India, Australia, the Black Sea, and the Gulf of Mexico.

"Atwood is a leveraged play on the price of oil. Oil prices have now blown past the original estimates of major investment banks. Commodities guru Jim Rogers recently predicted that oil will soon hit $200.

"Amid record high oil prices and dwindling supplies on land, the Shells, Exxons and BPs of the world are having to venture into ever harsher and more remote environments offshore to replenish their oil reserves. That puts offshore oil drillers like Atwood Oceanics in the catbird seat.

"As a result, day rates for Atwood's rigs are exploding. For example, one of Atwood's rigs is currently working for BHP Billiton at $170,000 per day. In May, that figure jumps to $360,000 per day for a one-well Eni job.

"Next, it's $405,000 per day for two years with Woodside Petroleum, and finally, it'll be around $450,000 for Chevron into early 2011.

"And with only 37% of the company's rigs booked up for 2009, and some rigs in the industry already fetching rates of up to $600,000 per day, the opportunity for ever higher day rates is enormous. No wonder Atwood's earnings grew at a breakneck 128% last quarter.

"Atwood should continue to move up despite its recent substantial gains. The company is also relatively small, and has zero debt, making it an attractive takeover candidate for larger competitors like Transocean.

"With global fund managers sitting on record levels of cash, stocks like Atwood will continue to skyrocket on the back of improving market sentiment. I'm looking for $130 on this stock over the medium term."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.