Seeking Alpha
0
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

National Oilwell Varco: A Wonderful Company Selling At A Wonderful Price

Company: National Oilwell Varco

Ticker: [[NOV]] (NYSE)

Price Target: $86

Long-term Upside: 68%

Thesis

Warren Buffett has often said: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." These are wise words to be sure; however, is not the ultimate goal to buy a wonderful business at a wonderful price? With global supply near an 80-year high, National Oilwell Varco is selling for a substantial discount to its sustainable earning power mainly due to fears over a pullback in E&P activities. The recent oil selloff creates a compelling opportunity to buy NOV, an industry leader with strong competitive advantages; primarily, cost advantages and high switching costs for its customers.

Industry and Competitive Position

Industry: Oil and Gas Services and Equipment

Grade: B+

Score: 3.3

NOV provides its customers virtually everything needed for the oil/gas drilling process and has been… Read More …