Canadian Oil Field Services

[mazengah_islander]

Strange, but true! An S&P 500 company reported less than expected fourth quarter earnings after the close on Thursday. On Friday its stock broke to an all time high on greater than average volume. The reasons: higher than expected fourth quarter revenues and encouraging guidance. In addition, the stock received an analyst upgrade. Name of the company is Rowan Companies, a supplier of oil services that focuses on offshore drilling.
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Several Bay Street and Wall Street analysts commented last week that fourth quarter results in the oil services sector likely will include positive surprises, particularly for companies involved with offshore drilling and land drilling in Canada during the winter drilling season. Analysts also noted that results likely will be accompanied by positive guidance. The oil services analyst at Merrill Lynch stated, “Deepwater rig demand exceeds supply, particularly for large units with over 5,000 feet of water depth capability. We expect to hear very bullish 2005-2006 guidance from companies with deepwater drilling exposure”. Stocks in the sector are responding. Oil Services HOLDRS (OIH) closed at an all time high on Friday.

(Excerpt from)
http://dvtechtalk.com/January/January24.htm
(see link for charts)