NOV will go UP
$120.00 on 5/07/08
$33.03 (-57.92% from time of market call)
As the demand for oil continues to rise National Oilwell Vargo stands to profit; National Oilwell Varco engages in the design, construction, manufacture, and sale of systems, components, and products to the oil and gas industry worldwide. It is an oil service company that operates in three segments: Rig Technology, Petroleum Services & Supplies, and Distribution Services.
The Rig Technology segment produces and sells systems for the drilling, completion, and servicing of oil and gas wells. It provides equipment that automates well construction and management operations, such as offshore and onshore drilling rigs; derricks; pipe lifting, racking, rotating, and assembly systems; coiled tubing equipment and pressure pumping units; well workover rigs; wireline winches; and cranes.
The Petroleum Services & Supplies segment offers various consumable goods and services used to drill, complete, remediate, and workover oil and gas wells and service pipelines, flowlines, and other oilfield tubular goods. Its products include transfer pumps, solids control systems, drilling motors and other downhole tools, rig instrumentation systems, and mud pump consumables. This segment also provides oilfield tubular services, including the provision of inspection and internal coating services, and equipment for drillpipe, linepipe, tubing, casing, and pipelines; and engages in the design, manufacture, and sale of coiled tubing pipes and composite pipes for applications in corrosive environments.
And the Distribution Services segment offers maintenance, support, repair, and operating supplies; and spare parts to drill site and production locations.
National Oilwell Varco serves drilling contractors, shipyards and other rig fabricators, well servicing companies, national oil companies, independent oil and gas companies, supply stores, and pipe-running service providers.
National Oilwell Vargo recently did a 2 : 1 stock split, and there services are in so much demand that I think they will see there post split heights of $120,and with a P/E ratio of 23 and forward P/E of 15 this company is very cheap at its current price.