The great game among hedge funds now is to find the babies that have been thrown out with the bathwater because of the Gulf oil spill disaster. The halving of the share Price of BP (NYSE:BP), Transocean (NYSE:RIG), and Halliburton (NYSE:HAL), is totally understandable because they were all intimately involved in the disaster. But the crisis has decimated the entire energy sector, even those that have little or nothing to do with the Gulf, despite the fact that these are the world’s most profitable companies and account for 11% of our GDP. One such morsel is McDermott International (MDI), one of the world’s preeminent deepwater engineering and power generation companies (click here for their site at http://www.mcdermott.com/ ). MDR get a scant 5% of its business from the Gulf, with 85% coming from the Middle East and Asia. The company has no less than $14 billion in bids pending or in process. It is one of a handful of players in the nuclear power plant construction space, an industry that is enjoying a new renaissance after a 30 year hiatus. Its major customer, Petrobras (NYSE:PBR), has announced a gigantic 5-year, $224 billion capital spending program to develop Brazil’s deep water Tupi oil field. Part of the play is that MDR is spinning off its deep water and nuclear businesses into separate companies. Of course, the stock has already had a nice pop as hedge funds have figured this out. But it is a name I would keep on a “buy on dips” shopping list. I’ll be looking for more of these because energy is the only sector right now that is actually cheap.