"National Oilwell Varco (NYSE: NOV), a buy in our 'Wildcatters portfolio,' will see an outsized benefit from improving conditions in the global oil market," says Elliott Gue in The Energy Strategist.

"Rig technology is the crown jewel of National Oilwell's business; the unit builds key equipment used on land and offshore drilling rigs.

"The unit is currently benefiting from the boom in deepwater drilling activity -- one of the only drilling markets that continue to see growth.

"Equipment used on deepwater drilling rigs is far more complex and expensive than that used on land or shallow-water rigs. As a result, selling equipment into the deepwater market carries far higher profit margins for National.

Continue reading Deepwater rigs boost National Oilwell Varco (NOV)

Deepwater rigs boost National Oilwell Varco (NOV) originally appeared on BloggingStocks on Wed, 10 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

"We sense a turn for the better coming in the oil sector," says Peter Way who tracks 'big money' investors for his Block Trader Oil & Gas Report. Here's his look at the "big block" traders.

"When we use the hedging analysis employed in our stock price forecasts, there are significant differences between some adjacent futures expirations. Here's the current picture:

"Front month (November) hedging suggests likely near-term higher prices. But the December contracts are likely to continue the past 3-month price decline - briefly.

"After that we could see crude rise over a few months into the $115-125 area or even higher, providing a bullish backdrop for most energy stocks. We sense a turn for the better coming in this sector.

"Several issues are selling at attractive prices now. Among major integrated producers, the standout prospect among the big oils is Petrochina (NYSE: PTR).

Continue reading Big block traders bet on oil sector favorites

Big block traders bet on oil sector favorites originally appeared on BloggingStocks on Mon, 27 Oct 2008 13:11:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Big players are bullying this puny market

Cramer on BloggingStocks: Big players are bullying this puny market originally appeared on BloggingStocks on Wed, 03 Sep 2008 08:55:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Institutions are flooding the nat gas futures

Cramer on BloggingStocks: Institutions are flooding the nat gas futures originally appeared on BloggingStocks on Tue, 19 Aug 2008 08:58:00 EST. Please see our terms for use of feeds.

Continue reading Five stocks to love from CNNMoney

Five stocks to love from CNNMoney originally appeared on BloggingStocks on Mon, 19 May 2008 16:19:00 EST. Please see our terms for use of feeds.

"Value stocks are those whose prices are relatively low compared to their fundamental value, as measured by factors such as earnings and net worth," notes Mark Hulbert.

"Value stocks can be considered all-season stocks, as history shows that they can perform well in both up and down markets." Here, the editor of The Hulbert Financial Digest also offers a list of value stocks that recommended by the most advisors who have also beaten the broad market over the last decade on a risk-adjusted basis.

"Value stocks are to be distinguished from so-called growth stocks, which have relatively high price-to-earnings and price-to-book ratios.

"Consider first how value stocks perform during bear markets. Believe it or not, they on average actually tend to make money. It's not only that they lose less money than the overall market, they actually gain.

"Take the 2000-2002 bear market, for example, during which the overall stock market declined by 48.6% (as measured by the dividend-adjusted version of the Dow Jones Wilshire 5000 index (97199001:Dow Jones Wilshire 5000 Composite Index

"In contrast, according to data compiled by University of Chicago finance professor Eugene Fama and Dartmouth University finance professor Kenneth French, the average value stock over this time gained over 80%.

Continue reading Hulbert on value stocks: All-weather plays?

Hulbert on value stocks: All-weather plays? originally appeared on BloggingStocks on Fri, 14 Mar 2008 09:20:00 EST. Please see our terms for use of feeds.

CNN/Money is good enough to put out the top performing stocks of 2007 list. Most of the companies are fairly familiar, but leading the pack for the S&P 500 is National Oilwell Varco (NYSE: NOV), a stock almost no one has heard of.

The company has been in the right place at the right time. It makes equipment for the oil and gas exploration industry. With the global need for energy rising, NOV is a near-perfect investment.

The firm is not only growing due to a strong industry environment. It is also making what Wall Street thinks are some smart acquisitions. It announced it would buy oilfield service company Grant Prideco (NYSE: GRP) for $7.4 billion in cash and stock. Because the companies are in similar fields, chances are the duplicate costs can be taken out to improve operating margins.

In the September quarter, NOV net income doubled to $366 million, which beat analyst estimates. Backlog for its products also hit a record.

But, the success of National Oilwell Varco points out that in the market, it is better to be lucky than good. The odds that the company could have done so well if oil were at $30 a barrel are probably low. The demand for exploration would be substantially less. The need for drilling equipment would be modest.

National Oilwell Varco had a great year. If oil prices move down, Wall Street should not count on it again.

Douglas A. McIntyre is an editor at 247wallst.com.

How National Oilwell Varco (NOV) climbed 128% originally appeared on BloggingStocks on Wed, 26 Dec 2007 07:45:00 EST. Please see our terms for use of feeds.

Technician Michael Ashbaugh expects a "cooling off period" before stocks again test their all-time highs. Yet, he remains bullish, with a particular focus on the oil services sector. In his MarketWatch Technical Indicator he explains, "The Dow was recently trading 206 points from all-time highs while the S&P 500 was 26 points from all-time highs."

He suggests, "Looking ahead, that's where the tension rests. The U.S. markets are facing significant resistance at record highs, and are extended near-term after a massive two-day spike. That means a cooling off period is likely due before they make a legitimate run at record territory."

Regardless of any short-term pullback, he adds, "The market's recent decisive break atop the 50-day moving average is distinctly bullish. The U.S. markets also confirmed their uptrend with a 24-to-1 positive volume session last Tuesday, meaning the longer-term path of least resistance is higher."

Meanwhile, one of his favored sectors, based on their technical positions, is the oil services stocks. He explains, "The Oil Services Index remains among the strongest sectors. We have selected several names to highlight as they are well positioned technically. And, their relative strength makes them better bets longer-term."

The advisor points to Weatherford International (NYSE: WFT); Cameron International (NYSE: CAM); Schlumberger (NYSE: SLB); National Oilwell Varco (NYSE: NOV); and FMC Technologies (NYSE: FTI).

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.

MarketWatch technician eyes oil services originally appeared on BloggingStocks on Tue, 25 Sep 2007 13:39:00 EST. Please see our terms for use of feeds.

National Oilwell Varco (NYSE: NOV) volatility elevated as NOV at record high on oil rally.

NOV, a worldwide provider of equipment a components used in oil and gas drilling production operations, closed at record high of $136.94. WTI Crude oil futures are down 0.03% at $78.21 a barrel according to Bloomberg. NOV overall option implied volatility of 43 is above its 26-week average of 38 according to Track Data, suggesting larger price risk.

Texas Instruments (NYSE: TXN) volatility at 30 into third quarter business outlook.

TXN closed at $35.72. ThinkEquity says that "TXN provided an in-line mid-quarter update." ThinkEquity goes on to say, "we view this as mildly disappointing given the strong environment for PCs, consumer, and high performance analog, and investor expectations for an in-line to slightly better outlook." TXN September option implied volatility of 30 is above its 26-week average of 27 according to Track Data, suggesting slightly larger price fluctuations.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: National Oilwell Varco (NOV) volatility & share price Up originally appeared on BloggingStocks on Wed, 12 Sep 2007 08:56:00 EST. Please see our terms for use of feeds.