Tidewater to Grow Through Acquisitions, Chief
New Orleans, April 12 (Bloomberg)
-- Tidewater Inc., the largest operator of offshore
oil-service vessels, plans to use the oil industry's current
slump as an opportunity to make acquisitions, Chief
Executive William O'Malley said.
prefer newer assets in markets where it already has a
strong presence, O'Malley said, declining to be more
specific. Tidewater has a 60 percent market share in West
Africa and also is strong in Latin America.
Companies that provide equipment and services to the oil
industry have seen profits and stock prices fall as low
oil prices prompt drilling cutbacks. Though crude oil
prices recently turned upward, the oil-service industry
isn't expected to recover much before next year.
``This is a period of high stress, but it's also a
period of opportunity, and we are going to take
advantage of opportunities that are out there,'' O'Malley
said in remarks at the Howard Weil energy conference.
New Orleans-based Tidewater has a fleet of 675
vessels, 65 percent of them outside of the U.S. Tidewater
bought Ocean Group Plc's offshore support division for
$535 million in 1997.
Tidewater shares fell
5/16 to 24 11/16 in early afternoon trading.
TDW has resistance at 30.00, after that at 35.00.
As technology corrects, and the market broadens
participation of TDW hinges on higher oil prices, the days of a
dollar a gallon gasoline are over. Yes mergers loom in
the horizon, since is cheaper to buy competitors at
below book value than to compete with them plus
synergies are also involved in this process.
days ahead for TDW, as the low P/E expands, pay no
attention to current earnings reports, they only reflect
the lower prices of the past.
Investors keep your
eyes on the ball (oil prices)...!
I (and probably a lot of others at this board) am
a fundamental analyst (with a BIG tendency toward
value), but fascinated by technical analysis. Can you
elaborate at how you arrived at these resistance levels for
the rest of us?
Of course, ever optimistic
about the stock, I'm hoping the level of support is
constantly increasing with the stock price, and the level of
resistance is non-existant.
Isn't it great to wake up
in the morning knowing you own the largest oil
service fleet in the world? GO TDW!!!!
Preview of US Commodity Markets for Monday, April
New York, April 16 (Bloomberg) -- The following
commodity markets in the U.S. are expected to be active
Monday when floor trading resumes. Some contracts have
after-hours trading before then.
Crude oil for May
delivery (CLK9 <Cmdty>) could rise from a 14-month
high on expectations that exporters will honor an
agreement to cut world crude supply by 2.7 percent. Those
cuts, which were pledged last month, already are
eroding a supply surplus that sent prices to 12-year lows
in December, the Paris- based International Energy
Agency said. Also, the almost month- long bombing of
Serbian forces in Yugoslavia by the North Atlantic Treaty
Organization is boosting demand for jet fuel. Oil prices are
up 52 percent since mid-February. May crude oil rose
46 cents to $17.33 a barrel on the New York
Mercantile Exchange, the lowest closing price since Jan. 29,
1998. (For news: NI OIL.)
Natural gas for May
delivery (NGK9 <Cmdty>) could rise on expectations
that unseasonably hot weather in the U.S. Southwest
will spur demand for gas to generate electricity for
air conditioning. Temperatures could reach into the
upper 90s Fahrenheit in Phoenix this weekend, according
to Weather Services Corp. in Lexington,
Massachusetts. Natural gas for May delivery at the Henry Hub in
Louisiana fell 1.3 cents to $2.124 per million British
thermal units on the Nymex. (For news: NI GAS.)
Copper for delivery in May (HGK9 <Cmdty>) could
fall from a four-month high amid record exchange
stockpiles and as some producers delay deciding whether to
reduce production because of low prices. Broken Hill
Proprietary Co., which has three copper mines in Arizona and
Nevada, said it will decide by the end of May whether to
close or sell the mines, which have annual capacity of
200,000 tons. Some traders are speculating the mines will
be shut down. Stockpiles at warehouses monitored by
the London Metal Exchange are at a record 741,350
metric tons. May copper rose 1.8 cents to 68.95 cents a
pound on the Comex division of the New York Mercantile
Exchange. (For news: NI COPPER.)
Corn for July delivery
(C N9 <Cmdty>) could rise on expectations that
rainfall will put U.S. farmers behind schedule planting
the nation's biggest crop. Above-average rainfall and
average temperatures are forecast for much of the Midwest
from April 22 to April 26, the National Weather
Service said. Some fields are too wet, and the soil too
cool, for planting. To be sure, farmers have until
mid-May to plant corn before yieldsare reduced because of
a shortened growing season. July corn fell 2.25
cents to $2.2325 a bushel on the Chicago Board of
Trade. (For news: NI WHEAT.)
Cattle for June
delivery (LCM9 <Cmdty>) could fall after a
government report showed the number of animals sent to
feedlots in March rose a larger-than-expected 22 percent,
signaling ample supplies this summer. Ranchers sent 1.731
million young cattle to feedlots during March, up from
1.421 million a year earlier, the U.S. Department of
Agriculture said after trading closed. Analysts expected a 16
percent rise in March placements. It was the third
monthly increase in placements after seven months of
declines and could lead to increased supplies of
market-ready cattle in June. Before the report, June cattle
ended little changed, rising 0.175 cent to 63.35 cents
a pound on the Chicago Mercantile Exchange. (For
news: NI CATTLE.)
Subj: Off to the races.....TDW
Date: 4/19/99 12:14 pm
"... resistance at 30.00
is minor is simply another little blip on the screen
of a fundamentally neglected stock selling with a
very low P/E, and a hell of a cash generating machine
as oposed to the over inflated internet stocks.
Owning TDW at least allows me to sleep well at nigth not
having to worry about some one inventing a better mouse
trap while resting, a real value stock. The descending
upper channel is at 34.00 and when we get there, then
40.00 will be the next objective."
Couldn't agree with manboking more, although I
couldn't have said it as well. We may bump against 30 once
or twice but it's basically a speed bump. We've
passed both the 50 and 200 day moving averages on volume
for the first time this year. Should settle in the
mid-thirties and start base building for the next push into
the forties later this spring or summer.
Dreamater...Bull Run now confirmed,
thru triple top on 4/19,
on positive momentum
near term objective 30.00.
channel now at 34.00 attainable,
next resistance at
Crude oil May futures closed at $17.80 (up 0.47
rally is intact, we go up again tomorrow.
Wrote this back in April of last year and feel
that we have spent a good portion of the last 9 months
building a base to go higher to Fair Market value around
48 a share. Yes it does take time , and patience is
"... resistance at 30.00 is minor is
simply another little blip on the screen of a
fundamentally neglected stock selling with a very low P/E, and
a hell of a cash generating machine. Owning TDW at
least allows me to sleep well at nigth not having to
worry about some one inventing a better mouse trap
while resting, a real value stock. The descending upper
channel is at 34.00 and when we get there, then 40.00
will be the next objective."
Naw... resistance at 30.00 is minor is simply
another little blip on the screen of a fundamentally
neglected stock selling with a very low P/E, and a hell of
a cash generating machine as oposed to the over
inflated internet stocks. Owning TDW at least allows me to
sleep well at nigth not having to worry about some one
inventing a better mouse trap while resting, a real value
stock. The descending upper channel is at 34.00 and when
we get there, then 40.00 will be the next objective.