Noble Corporation: Poised for a Jump

Noble Corporporation (NE), an offshore drilling rig operator, appears to have formed a triple bottom over the last several months. I had owned a November call on Monday and had planned to hold it for several weeks, at least until early November / late October. Perhaps not unfortunately, during a spike on Monday, my sell order was executed before I could alter the price, or even realize what had happened. Needless to say, I'm not too sorry. The stock closed down nearly 2% that same day and has been trading in a range since.

However, these are positive signs of the potential breakout above $52. The market seems to be hovering in anticipation of today's earnings report, scheduled for 1PM CT. Analysts are expecting $1.17 EPS, with a high estimate of $1.25, and a low of $1.11. I am expecting NE to meet or beat analysts' estimates. If that's the case, expect a move to $55+ by Friday's close.

Similarly, a good earnings report from NE will undoubtedly send Transocean (RIG) and Diamond Offshore (DO) soaring in kind.

Wait for confirmation of the breakout: if NE closes above $51.30 at least 2-3 days in a row, consider that your buy signal.

For anyone looking for long-term picks, this is a prime target. With oil nearing $100/bbl, NE is poised to take full advantage of global oil exploration.

Disclosure: I have no position in NE, RIG, or DO at time of writing.

Comments

[User 114748:]

Roger, Noble Energy (NBL) not Noble Corp. (NE) has found hydrocarbons off of the coast of West Africa.

2007 Oct 18 10:17 AM

[Mmarrkk:]

Kind of wonder about taking advice from someone when the confuse the company with another company with similar name. Does the term due diligence ring a bell? Sorry, Roger, you lost major league credibility here with that paragraph:

"In fact, on October 5, they struck another offshore reservoir off the coast of West Africa. "

2007 Oct 18 11:58 AM

[Roger Enright:]

I apologize for my hastiness. Time will tell on my forecast, however.

2007 Oct 18 03:14 PM

[pprimo:]

Hey dude, Noble Energy (NBL) and Noble Corp (NE) are not the same company. Noble Corp (NE) did not discover a well in cameroon and will never be reflected in the price of Noble Energy. Please don't post items when you do not have the facts correct.

2007 Oct 18 07:07 PM