I've come to realise that I have very few friends and if readership of this blog is to expand, I need to give people a reason to type out the two dozen characters that lead to this blog. So I've decided to offer stock tips as often as a high conviction idea hits me. They will most often be on the Indian and Pakistani markets, which I help my friendly gorah MD trade.
Today's stock tip is to buy oil services and rigging firms. Oil companies themselves have rocketed in value and are now perched on the edge of a very slippery slope. They will tank even if the Nigerian rebels take a piss for too long. Oil services companies on the other hand have order books that are full up for years in advance and absolute pricing power. The Indian firms have been weighed out by the general morose climate in the Indian market and are trailing the HK firm China Oilfield Services. The firms are Aban Offshore (ABAN IN) and Great Offsore (GOFF IN). If you dont know what is in the brackets, then investment advice is wasted on you anyway.
A word of caution, these companies tend to piss away money as fast as they make it. Keppel Corp of Singapore which is the biggest makers of oil rigs in the world managed to make a lower profit this year on increased costs. The Indian companies however are looking relatively more cost concious (what else would you expect from Indians) and are aggressively expanding market share.
Let's not let the Saudis all have the fun.
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