Broadly defined, there are three primary ways to play energy cycles –
exploration and production companies (ranging from tiny wildcatters to
huge international behemoths), service companies, and equipment
companies – and they all have their own cycles and quirks. In the case
of equipment companies, it's often the case that the stocks make the
biggest moves early in the cycle as orders are announced only to taper
off as those orders actually turn into revenue and earnings. To that
end, while Cameron (NYSE:CAM)
appears to have meaningful untapped margin leverage, as well as
significant revenue and cash flow growth prospects, it hasn't always
been a smart move to hang around after the big order announcements.
Please follow this link to read more on Cameron:
http://www.investopedia.com/stock-analysis/060513/cameron-come-orders-should-you-stay-delivery-cam-ge-fti-nov-slb.aspx
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