I know this is an old article (10-9-12) but worth a read if you haven't already.
10 reasons DVR is still is a solid speculative play at $1.30 a share:
DVR is a play on the continuing ramping up of offshore drilling activity worldwide.
Global offshore spending is expected to go from approximately $50B this fiscal year to $70B in 2016.
The company has huge operating leverage as its vessels are running at approximately 40% of utilization. Even getting to 50% would have huge positive impact on the bottom line.
Insiders were net buyers in the stock in the second quarter and at higher than the current stock price.
The stock is ridiculously cheap at just 40% of book value and 28% of annual revenues.
Backlog has grown from $178mm at end of 4Q2011 to $238mm at end of 2Q2012.
The company has done a good job of reducing debt over the past five years. Debt stood at $314mm in FY2007 and was down to $134mm at end of 2011.
Gulf of Mexico offshore is recovering after the gulf oil spill. DVR is the largest supplier of diving services in the gulf.
2013 is the transition year. DVR is expected to post a 35 cent loss for FY2012 but analysts believe it will be 7 cents a share in the black in FY2013. They also project an almost 30% rise in revenues in 2013.
The mean analysts' price target by the five analysts that cover the stock is $3 a share, more than double its current stock price. DVR is at 5 year lows and was at over $14 a share in that time span.