National Oilwell Varco Is Still a Solid Buy

In this week's edition of The Motley Fool's energy-focused show, "Digging for Value", analysts Joel South and Taylor Muckerman discuss second-quarter earnings from National Oilwell Varco (NYSE: NOV  ) . With phenomenal top-line growth, the market discounted this valuable supplier due to compressed margins throughout its product portfolio. Check out the video below to hear whether the contracting margins are reasons for concern or present another buying opportunity?

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  • Report this Comment On August 02, 2013, at 9:40 PM, XK120Fanatic wrote:

    Most of my investments are in the oil and gas industry, and in particular deep sea drilling. In recent times, both ATW and SDRL have ammounced placemets of new orders for new rigs with Chinese and Korean yards. I think that it is a pretty faie assumption to say that rigs are probably by far the biggest ticket items on NOV's books.

    But I ask myself where are they actually manfacturing these rigs?. Both the Koreans and the Chinese sell on PRICE, so IMO it is no wonder that NOV have been rerting diminishing margins for the past thre quarters, and no matter how big they are and how much clout they have, this is a very disconcerting matter.

    Just my ten cents worth!

  • Report this Comment On August 03, 2013, at 1:26 PM, tomd728 wrote:

    NOV is a "solid buy" if you are content to watch your initial investment cost produce a negative return.

    At some point NOV may be a solid buy but it is certainly not now nor has it been over the last 24 months.The name however keeps coming up on MF and is a core holding. There comes a time to move on .........

    OII is a "solid buy".

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