NOV

National Oilwell Varco Inc

Energy


Presented:07/20/2016
Price:$32.95
Cap:$12.36B
Current Price:$15.68
Cap:$6.17B

Presented

Date07/20/2016
Price$32.95
Market Cap$12.36B
Ent Value$13.36B
P/E RatioN/A
Book Value$43.37
Div Yield0%
Shares O/S375.00M
Ave Daily Vol5,166,895
Short Int9.94%

Current

Price$15.68
Market Cap$6.17B
National Oilwell Varco, Inc. provides equipment and components that are used in oil and gas drilling and production operations, oilfield services, and supply chain integration services to the upstream oil and gas industry. The company operates through the following segments: Rig Systems, Rig Aftermarket, Wellbore Technologies, Completion and Production Solutions. The Rig Systems segment designs, manufactures and sells land rigs, offshore drilling equipment packages, including installation and commissioning services, and drilling rig components that mechanize and automate the drilling process and rig functionality. The Rig Aftermarket segment provides spare parts, repair, and rentals as well as technical support, field service and first well support, field engineering, and customer training through a network of aftermarket service and repair facilities strategically located in major areas of drilling operations. The Wellbore Technologies segment designs, manufactures, rents, and sells a variety of equipment and technologies used to perform drilling operations, and offers services that optimize their performance. The Completion and Production Solutions segment integrates technologies for well completions and oil and gas production. National Oilwell Varco was founded in 1841 and is headquartered in Houston, TX.

Publicly traded companies mentioned herein: Halliburton Company (HAL), National-Oilwell Varco Inc (NOV)

Highlights

The presenter is now long shares of National-Oilwell Varco (NOV) after having been short the stock for “a long time”. He sees the risk/ reward as attractive with the stock trading at ~$33 and said, “Everything bad has happened or is known: the rig cycle rolled over, destocking is bad for manufacturers, NOV’s $9 billion backlog has ‘evaporated’, Sete filed for bankruptcy, and the dividend was cut”. With earnings expectations reset, he now sees short sellers as complacent and patient investors should benefit if earnings are close to a bottom, as he predicts.

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Idea Discussion

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