Yes, yes, great reply. I doubled my position in DPDW this week due to its very low risk exposure and positioning in more than a hot sector, but what may be a runaway bull plus a hedge against failing sectors should there be major market downturns.
There is always a bull market within a greater downturn if you know where to find it.
And consider the immediate correlation of this effect:
Rising Oil Prices = Inflation
Inflation = Possible Negative Markets in many sectors
BUT
Offshore Oil Services benefits from what harms the overall economy and other market sectors because higher oil prices triggers yet more capital expenditures on offshore oil exploration and development
AND
DPDW may be one of the finest candidates for a stock with exponential growth potential within what may be one of the hottest sectors in 2008. If so, that may make DPDW one of the top stocks in ALL of the US markets in 2008.
So I have weighted my position here more heavily than before due to more than its enormous upside, but its risk minimization for my portfolio and as a primary hedge against (and benefactor from) rising oil prices.
When you add in yet more risk factors (including the ones you mentioned), you also find DPDW avoids additional risk exposure due to:
1. Not involved in property speculation or ownership
2. Not holding assets in foreign countries, just filling any contracts in foreign locations
3. Heavy amount of projected work domestically in a booming Gulf of Mexico further avoiding political unrest and terrorism factors
4. Most likely benefits from increased business due to what hurts offshore oil facilities, namely disruptions and damage due to hurricanes
For so many reasons in my analysis, I have concluded DPDW has the best matrix of risk/reward factors in my portfolio right now
