Nabors Industries Ltd. (NBR) Holds Value: Barron's
Shares of land-based oil and gas driller Nabors Industries Inc. (NYSE:NBR - News) should appeal to value investors as the company trades at just eight times estimated 2007 profits, said a report in the August 20 edition of Barron's.
The Hamilton, Bermuda-based company trades at one of the lowest price-to-earnings ratios among non-financial companies in the Standard & Poor's 500 index, as Wall Street fears an oversupply of land-drilling rigs and weakness in the natural-gas market -- which drives much of Nabors' large North American operations.
Robert Marcin, the head of Defiance Asset Management, said Nabors does not need to hit the current 2008 consensus estimate of $4 a share for investors to do well.
"If Nabors makes $4, it's a home-run stock. It could trade in the 50s. Even with $3 a share in earnings, Nabors could be a $40-to-$45 stock," Marcin said, according to the report.
Source: Barron's
The Hamilton, Bermuda-based company trades at one of the lowest price-to-earnings ratios among non-financial companies in the Standard & Poor's 500 index, as Wall Street fears an oversupply of land-drilling rigs and weakness in the natural-gas market -- which drives much of Nabors' large North American operations.
Robert Marcin, the head of Defiance Asset Management, said Nabors does not need to hit the current 2008 consensus estimate of $4 a share for investors to do well.
"If Nabors makes $4, it's a home-run stock. It could trade in the 50s. Even with $3 a share in earnings, Nabors could be a $40-to-$45 stock," Marcin said, according to the report.
Source: Barron's
Labels: Nabors Industries Ltd., NBR
posted by Stock Administrator @ 11:59 PM
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