Focus Stock of the Month
Once a month we will provide a free analysis of a company from our Amateur Investor Index Top 100 which we feel is a stock to watch.
Our selection for January is Nabors Industries (NBR)
Fundamentals:
|
NBR |
4Q 99/98 | 1Q 00/99 | 2Q 00/99 | 3Q 00/99 |
|
% Increase in Quarterly Sales Growth |
+4% | +89% | +132% | +149% |
|
% Increase in Quarterly Earnings Growth |
-70% | +0% | +433% | +525% |
| % Increase in Quarterly Net Profit Margins | +3.5% | +6.4% | +8.3% | +11.2% |
Earnings Outlook:
Estimates for the next two quarters and next two years:
4Q 00/99 |
1Q 01/00 | 2000/1999 | 2001/2000 |
| E .32/.06 | E .38/.12 | E .85/.23 | E 1.78/E .85 |
| +433% | +217% | +270% | +109% |
NBR is a land drilling contractor with over 500 actively marketed land drilling rigs as of December 31, 1999. Nabors conducts oil, gas and geothermal land drilling operations in the US Lower 48 states, Alaska and Canada, and internationally, primarily in South and Central America and the Middle East. Nabors also is one of the largest land well-servicing and workover contractors in the United States. Nabors also is a provider of offshore platform workover and drilling rigs. Nabors markets 37 platform, 11 jackup and four barge rigs in the Gulf of Mexico and international markets. These rigs provide well-servicing, workover and drilling services. To further supplement its primary business, the Company offers a number of ancillary well-site services, including oilfield management, engineering, transportation, construction, maintenance, well logging and other support services, in selected domestic and international markets.
Ratings as of 1/1/01 include:
EPS: 77 RS: 93 ACC/DIST: B, GROUP
STRENGTH: 45
Industry Group: Oil & Gas-Drilling
Shares
Outstanding: 146.9M, Float Shares 135.1M
Institutional Ownership: 89%
Insider Ownership: 8%.
Average Daily Volume: 1.3 million shares.
Next Earnings Report: 2/9
NBR recently broke out of a Cup and Handle pattern and moved above its Pivot Point around $57. If the Energy sector continues strong then NBR may still have some upside potential. NBR has had strong sales and earnings growth over the past few quarters along with increasing net profit margins. These trends are forecast to continue in 2001.
***The Focus Stock of the Month is our opinion of a company to watch in the future. This doesn't mean it's a recommendation to buy the stock.***
