35 new drillships this year. Dayrates have to go down. Old rigs stacking up. Order growth slowing. Another cbi for web? I think so. Rolled profits into brk so i guess i am not entirely out. But seriously, how can it keep going at 35 bil market cap?
Order growth slowing? That's a gross understatement.
In the offshore sector (where the big $ is) orders have come to a dead stop and some drillers are trying to get out of their build commitments. There will not be any significant offshore rig newbuilds for many years as the industry has grossly overbuilt and rig dayrates are going down faster than Linda Lovelace.
It can go up as it is somewhat undervalued based on the fact that the company divested itself of a less profitable drag on its financials. It is the leading, by far, company in its niche Most of the analysts have the target price a whole lot higher it is far leaner and hopefully meaner. This is a hold, IMO. Having said that, I'm selling my speculative options at a huge profit because, in a market cdorrection which is due, my profits could evaporate quickly.
If a correction does come, I? intend to load up to make NOV my dominant stock in my portfolio.
Well the profits went into brk so i guess i don't really not own nov but i will let others figure out how much further it can run. Did the same with bnsf, heinz and lubrizol which all got bought ot. Wouldn't be surprised if brk took this out with another company like they did with hnz.