NOV Inc: Inevitable Upside But A Risky Entry Now (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• The world is facing an energy crisis, and it needs fossil fuels in the interim. But investments in O&G have been lagging, and it needs to pick up.
• NOV is a beneficiary of upstream O&G capex; it is poised to benefit from the inevitable increase in investments.
• A fundamental valuation assuming a return to an O&G capex up-cycle suggests 40% upside to the stock.
• However, I believe volatile energy stocks need to be looked at from a technicals perspective too. Here, the stock is nearing key resistance levels.
• Overall, NOV is on my high priority watchlist to buy at the right time.

Read the full article here.