Category archives for: Unpopular Companies

Microsoft’s Depressed Stock Price Attracts Flock of Value Investors

At the turn of the century, few observers could have possibly foreseen that Microsoft would become a favorite bargain purchase for value investors in 2010. The dot com boom was in the process of peaking and any company even vaguely associated with software or technology traded at stratospheric multiples of earnings. Ten years later, Microsoft is statistically cheap but is it a great potential investment or a classic “value trap”? Read this article for one opinion.

A Closer Look at Noble Corporation’s Q2 Results

Noble Corporation recently announced second quarter 2010 earnings of $218 million, or $0.85 per share. The results were negatively impacted by a combination of lower utilization for the overall fleet and sharply lower average dayrates. As a result, contract drilling revenues dropped to $687.5 million for the second quarter compared to $808.6 million for the first quarter. Second quarter 2009 contract drilling revenues were $868.2 million. In this article, we take a closer look at Noble’s results.

Diamond Offshore Represents Interesting Play on Deepwater Revival

Diamond Offshore

In this article, we profile Diamond Offshore, one of the leading companies in the deepwater drilling industry. In previous articles, we focused on two companies in the offshore drilling industry with lower risk profiles. Both Noble Corporation and Ensco plc have exposure to deepwater drilling in the Gulf of Mexico but also have significant international operations along with large fleets of jackup rigs that are designed for less controversial shallow water drilling. Read this article for more information.

Noble’s Acquisition of Frontier Highlights Importance of Clean Balance Sheet

Frontier Drilling

Earlier this week, Noble Corporation announced that it has entered into an agreement to acquire Frontier Drilling in a cash transaction valued at $2.16 billion. Frontier is a privately held independent drilling company with a fleet of three dynamically positioned drillships, two conventionally moored drillships, one deepwater semisubmersible drilling rig, and one dynamically positioned floating production, storage, and offloading (FPSO) vessel. In addition, Noble has entered into an agreement with Shell that favorably impacts backlog. Read this article for more details.

Ensco International Profile and Analysis

Ensco 102

Ensco International plc is an offshore contract drilling company that provides services to oil majors and independent oil exploration firms. The company has historically focused on jackup rigs designed for relatively shallow water but has devoted the majority of capital expenditures in recent years to build up a fleet of semisubmersible rigs capable of deepwater operations. Ensco has a fleet of 45 mobile offshore drilling units comprised of four semisubmersibles, 40 jackups, and one barge rig. In addition, the company has one new semisubmersible unit ready for deployment in August and three semisubmersible units scheduled for delivery in 2011 and 2012. Read this article for more details.

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