|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
JUNE 7, 2004
Tidewater: Ready To Rise  With oil prices surging, investors are seeking vessels that the rising tide might lift. To some pros, Tidewater (TDW
), operator of the world's largest fleet of offshore oil-service ships, is attractive at 27.24 -- down from 35 in early March. That drop was due to a slowdown in Gulf of Mexico drilling. But Roderick McKenzie of investment firm Sterne, Agee & Leach sees a pickup in the gulf and says that international operations will give Tidewater's earnings their strongest push.
"[Drilling] has picked up in Southeast Asia and West Africa -- and the Middle East outlook is good, as the majors start new projects," he says. Top prices spur a boost in exploration, he notes, which expands Tidewater's business. He recently upgraded his rating to a buy, figuring Tidewater is worth 35, based on 19 times his 2005 earnings forecast of $1.35 a share, and 13 times his 2006 estimate of $1.95. In 2004, McKenzie expects $1.04, reflecting the Gulf problem, vs. 2003's $1.57. Scott Kuensell of Brandywine Asset Management, which owns shares, says Tidewater, with its 570 vessels, is positioned to profit from a surge in activity anywhere in the world. Although the Gulf of Mexico has been a challenge, he, too, expects drilling there to revive soon. And with the stock trading below its net asset value of $28 a share, Tidewater is cheap, figures Kuensell. Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2004, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
