McDermott: 2 Recent Events Make This $6 Oil Stock An Increasingly Ripe Takeover Target
- A significant pullback in oil stocks has created a major buying opportunity for investors and acquisition-hungry corporations.
- McDermott now trades below stated tangible book value of $6.56 and way below what actual book value might be, which could be closer to $10 per share.
- Management has confirmed that a turnaround is in place and recent data confirms improving trends in the contract backlog.
- Analysts suggested that McDermott could be ripe as a takeover, especially if the contract backlog improves, and it has.
- McDermott's valuation appears too cheap to ignore and with a stellar reputation in the oil industry, it could be an ideal takeover target.