Hello Friends,
Today i would give another stock pick. This is my personal favorite and it is safe to assume that i hold positions in it. Aban Offshore is into Oil Drilling And Exploration. Lately it has deployed a few rigs at a very cheap rate but considering the fact that the global oil prices are on a rise and that the stock is trading at a very low P/E , i think this is a very good buy.
Off late , it had an oil rig incident which hampered the stock value. The stock fell close to 60% on that news, which i think was completely insane as the company does not make 60% of it revenues from that rig. Moreover, now it has received the insurance claims which the company would to deploy new rig and maybe pay off the debts it has on it books.
The P/E investors too are bullish in this space and are ready to fund operation, which is a very good sign for the company. I see the stock going to 1500 in the next 4-6 month and a long term target of 2000.
In 2008, the company touched a high of 5000 odd levels, the market has almost reached the old highs but this particular stock is still down close to 70% from its previous high. This gives me confidence that the stocks would have the immediate relief rally which would take the stock to the level of 1500 in the short term.
Happy investing
