Out Fox The $treet

Atwood Oceanics remains well positioned for the offshore drilling market. Barclays placed an extremely negative call on the deepwater drilling segment even after huge declines by the associated stocks. The company has a modern fleet of rigs that already produce the majority of EBITDA. The negative call on the offshore drillers by Barclays is strange considering the segment is already beaten down. The analyst call was very bearish on some of the drillers that lack a fleet of modern rigs, but the call was rather neutral on Atwood Oceanics (NYSE: ATW ) despite the positive rig position. Read the full article at Seeking Alpha. Disclosure: Long ATW. Please review the disclaimer page for more details. 

In the middle of rehashing the same short-term weakness story in the deepwater drilling sector, Atwood Oceanics ( NYSE: ATW     ) actually admitted that the weakness in the market was only impacting the old rigs. The company, while being cautious the whole earnings conference call, actually admitted that the bifurcation in the market is an opportunity and not a threat. The call started with the general theme of the Noble Corp. ( NYSE: NE     ) report calling for a pause that would refresh the market. Atwood Oceanics discussed slowing demand, which would hamper old rigs that might be cold stacked eventually. Atwood Oceanics hasn't actually seen any slack in demand for the high-specification rigs it is building. The report generally backs the ongoing theme of SeaDrill ( NYSE: SDRL     ) that new deepwater rigs will continue to command strong prices through at least 2020. Read the full article here . Disclosure: Long ATW. Please revie...

It used to be that growth stocks traded at 1x the earnings growth rate. A stock growing at 10% with earnings forecasted at $2 would trade at $20 and in some cases up to 2x that growth rate. In the current climate a stock such as Atwood Oceanics (NYSE: ATW ) can trade at virtually half the growth rate. The company is an under-the-radar global offshore deepwater drilling contractor engaged in more » Disclosure: Long ATW. Please review the disclaimer page for more details.