Wednesday, January 16, 2013

What I am Buying Today

In the last 2 days there have been some interesting opportunities in the market and I feel the next couple of weeks will offer buying opportunities for investors that believe the uptrend will continue.

Today we purchased a stock for several of clients in a sector that is often overlooked, but has great value when compared to the overall market.

How would you feel about a stock that is trading with a forward P/E ratio of 8.6 and a PEG ratio of 0.38? And it sports a 2.5% dividend yield. Well that is just the fundamentals.

Here is a little about the company. It is an offshore drilling company that has over 70 rigs positioned around the globe that are mainly focused on deepwater. With the search for oil expanding to the deeper parts of the ocean the demand for deepwater drilling services provided by this company should remain high for years to come.

Technically the stock is pulling back from a 52-week high and the healthy weakness triggered a buy signal. We felt is was a great combination of fundamentals, technicals, and sector.
 

   

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