Oilfield services and equipment sector

**vik589** Fri Dec 23, 2005 12:58 pm

Oilfield services and equipment sector
Hi blast,
Just wanted to know what your views are on the following stocks in the oilfield services and equipment sector. Have you looked at any of these before and do you see any of them as a good value play.

Nabors Industries(NBR)
Ensco International(ESV)
Noble (NE)
General Cable (BGE)
Chicago Bridge and Iron (CBI)

A few of these stocks are also covered by Valueline and that publication lists NBR and NE as stocks with good capital appreciation prospects from 2006 to 2008-2010. Any comments will be appreciated.....thanks :)

**blast_investor** Fri Dec 23, 2005 9:36 pm

Hi vik589

I am neutral on NBR and NE valuation, but I am bullish on the sector prospect because I expect higher drilling activities going forward.

Oil service stocks are pretty fairly valued. Their business prospect is pretty bullish because of high energy environment. On the other hand, this sector is pretty cyclical, therefore the cyclical risk is pretty high too.

I myself would not invest into oil service companies because the valuation in US oil drilling companies are far more cheaper and prospect is better than oil service companies.