Back in October Tidewater (TDW)
was one of the relatively few energy service companies that looked
overvalued to me. While I liked the company's strong position in
offshore and deepwater supply vessels, I just didn't think that paying
such a high multiple was reasonable given risks in the North Sea and
Angola, not to mention potential delays in floater and jackup
deliveries.
As it turns out, the shares declined more than 20%
since that piece, with the stock taking a big hit on disappointing third
quarter results. I don't see the results as a sign of any particular
operating deficiency, though, and I believe the reset in valuation and
expectations makes this a much more interesting name to consider today.
Read more here:
After A Rough Patch, Tidewater Looks A Lot More Interesting
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