Does anyone know what this contract might mean to their revenue and bottom line? It looks like an outstanding contract and opportunity. "The scope of supply for phase one of the project includes 15 subsea trees, five manifolds, subsea drilling systems, control systems, flowline connections and related subsea equipment and life-of-field support."
Thanks for the replies. It is appreciated. I also picked up 500 shares yesterday. I just can't understand why this company is down.
I did hear about it from Cramer, however I did some DD for a couple of weeks or so before jumping in. (I do that with all his picks - some are actually very good and have made me a bunch, but you MUST wait and do your DD after he recommends a stock - he stresses this as well.)
Cramer did have good things to say about the stock that made sense to me and was worthy of DD and thus the purchase.
I've invested in the oil services sector for a long time, but have stayed with the SLBs, HALs, RIGs, and the refiners for the last couple of years. I too believe this is a very long term bull market in enery, but every bull has it's ups and downs too, just as long as the trend stays up.
Probably a very good move to get in at these levels. I don't expect FTI to have any problem getting back up to it's $65 levels - even in the next couple quarters. If they continue to hit earnings and announce a few more contracts first half of this year, I think we're right back to $65. "course I wouldn't have expected this most recent beating either - we'll see.
They've signed bigger. But this is definitely a significant project (ANOTHER of the many significant projects). They signed a much much bigger one in the Pazflor project just Jan 2nd. This contract by itself won't have a direct affect on their bottom line but it certainly will contribute positively to it (assuming good execution). It is, as importantly, reinforcement of the industry leading position of FTI. They are able to land these contracts all over the world and deliver technologies that make once unaccessible oil reserves accessible.