Offshore Oil Driling Stock Play - FMC Technologies
Cramer offered up another offshore oil drilling stock play in FMC Technologies (FTI). Cramer explained that FMC is the market leader in subsea Christmas trees that are used to connect deepwater oil wells to rigs at the surface. The trees help to control the movement of oil, gas and other fluids by regulating the pressure and helping to avoid oil spillage. The higher use of the trees plus their connection to a single manifold help oil companies cut down on the number of rigs at the surface. The subsea business division has grown by 29% since 2002 and the company thinks it can grow 62% over the next five years. The company currently has a $5 billion backlog and sees another $1.8 billion worth of work for the next 15 months. Also the firm is looking to buyback 10% of its own stock. Cramer said the stock is really cheap and should be bought at current levels. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com




Leave a Reply