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Nabors Industries Ltd. Message Board

  • philippians4and13 philippians4and13 Jun 2, 2006 5:37 PM Flag

    NBR Insider buyers; Whiteknight answere

    Sorry about the typo in the post this a.m. The company with the $10,000,000 in insider buying was NBR, not DNR. Here is the corrected post:

    NBR looks good to those knowledgeable in the industry. Consider the complete lack of insider selling this year and also the $10,000,000 in purchases (at share prices above current levels) by the president, CEO, and one vice president on 2/28/06.

    Consider also the following news from Yahoo Finance. Here is an excerpt from yesterday's announcement that a Dallas-based fund is buying oil & gas stocks:

    "The fund, EnCap Energy Capital Fund VI includes more than 100 major institutional investors.

    All told, EnCap has raised 12 investment funds focused on oil and gas. It has managed more than $4 billion in institutional money and supplied growth capital to 125 companies.

    Some of EnCap's portfolio companies are now part of Chesapeake Energy (NYSE: CHK - News), El Paso Corp. (NYSE: EP - News), Denbury Resources (NYSE: DNR - News), Forest Oil (NYSE: FST - News), Comstock Resources (NYSE: CRK - News), Energen (NYSE: EGN - News) and Plains Exploration (NYSE: PXP - News)."
    Whiteknight, to answer your question, I believe the insider buying is separate from any company buyback of its own shares. The insiders, in my view, are making their own investments and thus showing that they like the price of NBR at levels above today's close. The $10 million was bought at more than $65/share (pre-split). Unless the three insiders are somehow required to buy through an unusual contract, this is a very good sign for NBR longs. (I am not aware of any such contract and mention it just as a theoretical possibility.)

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