Small Cap Oil Well Services Companies With Solid Valuations
10 March 2011Let us start with McDermott International, that is in a business of engineering, construction and installation of offshore upstream oil and gas companies worldwide. Company is advanced in providing services for offshore pipeline repairs and subsea systems primarily for oil and gas companies.
Back in December of 2009 its oil and gas construction segment finally completed the transaction with Ocean Team USA which involved the acquisition of almost 60% interest in a vessel owning company. In 2010, MDR also completed a spin-off of its power generation systems in government operations segments.
The stock has been on a steady uptrend from October of 2010, rising from $15 a share to currently $23.77 a share using its 50 day moving average as a stepping stone since it never fell below its key support level. Its 200 day moving average is $16.38 with a relative strength index of 53.67, which is considered neither overbought nor oversold at this level.
Next in line is Helmerich & Payne, Inc, a $6.39 billion company that is engaged in contract drilling for oil and gas wells throughout the states.
The stock had a recent runaway gap at the beginning of February as it deviated from its 50 day moving average of $56.50 with an increased volume. The stock is currently trading above its 200 day moving average of $45.25 and its 50 day moving average of $56.50 with a relative strength index of 47.34.
Company boasts an 18.1% average return on equity and a 16.8% earnings-per-share growth for the past five years along with a three-year revenue increase of 4.8%.
And last value gem of the day is Oceaneering International, a $6.45 billion company that provides engineered services and products for offshore oil and gas industry with a concentrated focus on deep water applications. Company also serves the defense and aerospace industries in providing services for subsea products, projects, inspection as well as mobile offshore production systems.
The stock has been on an uptrend ever since the bullish momentum crossover of its 50 and 200 day MAs have occurred back in November of 2010. The stock has been making higher highs as it is using its 50 day moving average of $7.10 as a stepping stone.
With the recent crude oil price spike, it is hard to tell which companies are fundamentally improving and which are just benefiting with no particular company specific improvement.