Thomas Lott
Long/short equity, deep value, special situations, hedge fund manager

National Oilwell: Premier E&P Service Company At Bargain Valuation

National Oilwell Varco (NYSE:NOV), a seller of oil rig equipment, has seen its stock price falter lately on concerns of lower rig demand, as well as margin pressure in its Rig Technology Group. From a one-year high of almost $90 a share, NOV now suffers in the high 60s. Investors fear that growth is slowing, that rig orders have peaked, and that declining rig counts in the US will impact margins too. But despite these concerns, the reality is that National Oilwell is one of the highest quality E&P service companies in the world, boasts top management, and long term is a solid secular growth story despite today's low valuation.

In fact, based...

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