The government is pouring billions into the technology.  Cisco CEO John Chambers said it will be bigger than the internet.  The opportunity for investors is indeed BIG and now there’s a diversified way to play “it” – the smart grid revolution.

There are quite a few useless and overlapping ETF’s out there and this industry is in need of a major shakeout, but every once in awhile a great ETF comes along and the First Trust/Clean Edge Smart Grid ETF (GRID) is no exception.  The ETF aims to track the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index and is a modified market cap weighted index which includes companies that are primarily engaged in all components of the smart grid – from the meters, to the network, to energy storage to software. 

The fund aims to focus primarily on smart grid plays by weighting those companies deemed as smart grid “pure plays” much more (80%) than big companies with a fraction of their business in the smart grid arena (weighted at 20%).  For example, a company like Itron (ITRI) is going to comprise a much larger portion of the ETF than a GE would. 

:: >> Get More Analysis On the Smart Grid ETF (GRID) Here

The ETF is comprised of 29 companies, but here are the top 10 holdings.  Companies must have a minimum float adjusted market capitalization of $100 million and a 3 month avg daily dollar trading volume of $500K.

Other smart grid plays included are AEIS, COMV, DGII, ESE, BGC, GE, ITLN, ITC, MTZ, PIKE, SATC, VMI, WCC, ABB, CBE, JST, TLVT, SI, NGG

Here’s a prospectus of the Smart Grid ETF (GRID)

After just two days of trading, the Smart Grid ETF (GRID) offers plenty of liquidity, trading 200K shares today.  I’d imagine liquidity will continue to improve rapidly in the coming months for you short term traders out there.

Whatever credibility Dick Bove of Rochdale Securities has left can now be thrown out the window.  It won’t matter at CNBC or Fox Business though, because for some reason he’s considered a guru analyst in the financial sector.  Following Wells Fargo’s (WFC) earnings yesterday morning, he was on CNBC with the following comments before the market opened:

At the beginning of the segment he said Wells Fargo “has its loan losses under control” and that they “should be able to grow revenues by increasing loan volumes”.  At the 1:20 mark he said Wells Fargo was one of the three financial companies that “should do well in the market today and lift all financial stocks.”  To close out his thoughts on the financials, he called Wells Fargo a “standout”  with those earnings numbers.

Now fast forward a few hours later to about 30 minutes before the market close yesterday.  Bove issues a surprising Sell rating on Wells Fargo, downgrading the stock from Neutral.  This morning he was on Fox Business explaining his Sell rating.  Here are the highlights from his comments about Wells Fargo:

- not expanding its loan book
- margins on loans being sold going to come down
- big increase in loan losses through the beginning of next yeare
- unsustainable gains in their hedging portfolio
- will take about a year to get its position back where it should be

In response to the flip flop, Bove defended himself by saying he didn’t have all the results when he went on the air.  Then why are you making an analysis?!  Why not just say give me a few more minutes until I have all the facts.  It’s irresponsible and reckless behavior at best. 

With gold breaking out of a 1.5 year base in recent weeks, it’s certainly been the focus of much discussion once again.  How high will it go?  Are we about to enter a mania phase?  What’s the best way to play the sector?  I thought I’d enter the fray and tackle some of these questions, primarily from a technical perspective.  In this article I take a look at the SPDR Gold Trust ETF (GLD) in order to get an overview of where gold has been and where it might be headed.  In Part II, which I’ll post towards the middle of the week, I’ll take a look at a few gold stocks that I think represent a good leadership group.  That is, companies that are profitable and in some cases growing quickly. To close out the series, I’ll post another article later in the week or next weekend taking a look at several speculative gold plays based purely on momentum.  These are trades that carry considerable more risk and potentially much greater reward. 

With that, let’s jump into a couple charts of GLD which I think are quite revealing. 

The first one below is the shorter term chart showing two very bullish moves in September and then again here in October.  The first big move that really kicked off this rally in gold was the Sept 2nd breakout out of a bullish wedge formation.  After a short consolidation, it eventually broke out again, this time to a new all time high above that all important 100 level.  Note the big pick up in volume on the buy side which indicates quite a bit of conviction on the part of buyers.  I do think gold is a bit extended in the short term and probably needs to trade sideways or even pull back to 100 over the next few weeks.  That should be enough to clear the way for the next and possibly final leg up of this strong up trend. 

There are all kinds of estimates on how high gold will go.  It’s quite similar to what was happening in 2007 when the price of oil skyrocketed into the stratosphere.  My feeling is that there is certainly room to run in gold, but we are much closer to a big top in gold then another big run (like we saw over the past nine years).  In the chart below, I only show the move since 2005, but the big move in gold really began back in early 2001 when it was just $275/oz.  Despite what many of those selling gold products and trading services will tell you, it appears the move in gold is largely done. 

If you take a look at the quality of the base formations at the end of each leg up, what you’ll see is a significant increase in the depth and sloppiness of the base.  It reveals that an increasing number of people are watching and trading gold.  Just see how long it takes for a gold commercial to come up on any business channel!  When that happens, the mega move is largely over.  What I see happening is some kind of climactic run in gold over the course of a few months with  gains of 20 – 30%.  That’s not a number pulled out of a hat, but based on previous runs from previous bases.  Notice how the farther up you get into the rally, the returns diminish as the base quality deteriorates.  Take a look at any big move in a stock and you’ll see this similar pattern.  It’s reasonable to assume that the returns from this breakout will be less than what we saw with the 2007 breakout.. so somewhere around 20 – 30%.  If the price of gold gets into that 1200 – 1300/oz area I’d be looking for some major topping action!  A climax run in gold over the next few months followed by massive selling on the part of institutions may be the end of a nearly 10 year bull run in gold.   Get more gold analysis here

Everybody is talking about the US dollar and how low it can go, about gold and how high it can go and most of all the market.  Just when will a major correction take place in this market? 

Of course there are no certainties in the market, but good technical analysis can give you probabilities and steer you in the direction of greater odds of success.  Adam Hewison of Market Club just released a new video yesterday taking a look at the US Dollar, Gold and the S&P500.  I have to agree with all the analysis in the video.  You might be surprised to see the gold estimates and just how far the S&P could correct.

Video: see how to trade the big trends over the next couple of months.

In just a few weeks on December 7th, a secret meeting of world leaders takes place that will undoubtedly go a long way in shaping how we live our lives. .. from the kinds of cars we drive, to how many hours we can run hot water, to how much we pay in electricity bills each month.  The COP15 Climate Change conference in Denmark will provide extraordinary profit opportunities in what venture capitalist firm Kleiner Perkins Caufield and Byers said “could be the largest economic opportunity of the 21st century.”  What is that opportunity?  Cleantech.  Everything from renewable energies, to energy efficiency, to water treatment and conservation.  The opportunity in the coming years will be extraordinary and for those that position themselves, will reap the rewards. 

Following the last meeting, international alternative energy companies such as Vestas Wind, Sunways and Climate Exchange PLC all skyrocketed and the profits could be bigger this time around.  The big guys know this and are already positioning themselves.  According to Green Chip Stocks International, Morgan Stanley, Citi and JP Morgan were given the inside scoop on COP15’s agenda last year and almost immediately mapped out their entire lending strategy for the next 40 years to be in synch with the $45 trillion global trend COP15 is responsible for.  Some companies will be left in the dust while others will lead the way into the future.

Green Chip Stocks has more details on this extraordinary opportunity ..

Several days ago I posted what I thought were the top 5 IPO’s of 2009 and in this report I round it out with the next 5 best IPO’s of 2009.  Please note that these are not ranked solely on performance, but rather on fundamentals such as earnings and sales growth, ROE and margins.  No, this is not an extremely scientific ranking.  You data junkies can crunch the numbers and run through your algorithms elsewhere

6. Shanda Games (GAME):  This was one of the big IPO’s from last week, but didn’t perform as well as A123 Systems (AONE) out of the gates.  After opening at $13, it sold off the rest of the day and closed below $11.  Considering the run that the China gaming stocks have had, I think this IPO at this stage potentially marks a top in this sector.  That’s not to say the growth won’t continue, it’s just that they have gotten ahead of themselves a bit. 

Shanda Games is a spinoff of Shanda Interactive (SNDA).  Certainly, the success of the Changyou.com (CYOU) spinoff from Sohu.com (SOHU) had something to do with the IPO.  With the overall market risk appetite increasing and gaming stocks on fire, it makes sense.  Shanda Games contributes 95% of the revenue of Shanda Interactive and the bulk of that revenue is concentrated in just two games.  Still, that’s less of a risk than Changyou.com (CYOU), which gets most of its revenue from just one game.  Shanda Games profits nearly doubled in 2008 over 2007 and the company is on pace to come close to that again here in 2009.  Get more GAME analysis here.

7. Logmein (LOGM): Logmein provides remote access software enabling you to access your computer from anywhere.  You can even access your desktop from your iPhone.  Cool stuff!  This is a small company that really started seeing some growth towards the end of 2007 and is expected to turn its first yearly profit here in 2009.  Quarter over quarter revenue growth over the last 4 quarters has been impressive at 99%, 86%, 73% and 58% while EPS growth has come in at 108%, 150%, 200% and 289%.  Growth is expected to moderate in 2010, but this remains a company to keep on the radar.  Technically, it’s in the process of carving out its first base which may end up as a cup with handle.   Get more LOGM analysis here.

8. Rosetta Stone (RST): Many people are familiar with this software company that makes learning a foreign language much easier.  The company rolled out a high profile ad campaign during the Summer Olympics last year featuring Michael Phelps.  Smart move because it helped generate awareness of the company ahead of the IPO less than a year later.  While the stock has had a tough time gaining traction since the IPO launch on April 16th, and took a hit after lowering guidance about a month ago, this is still a company experiencing impressive growth.  After stumbling in 2006 with a loss, it has bounced back in a big way, returning to profitability in 2007 and posting record profits last year.  Here in 2009, the company is expected to grow EPS by another 40%.  It’s going to be at least several weeks before the technical damage is repaired, but this is one company that must be on the radar.   Get more RST analysis here.

9. Tri-Tech Holding (TRIT): In the first top 5 IPO report, I highlighted Duoyuan Global Water (DGW) as a top play on China water scarcity.  I think Tri-Tech Holdings is a darn good play as well.  The company develops and implements systems (both hardware and software) to assist government entities in monitoring and managing water supplies.  It’s a very small company and a fraction of the size of Duoyuan, but the growth and profit potential is just as great, if not greater in my opinion.  The stock has already doubled in price following the IPO on September 10th and I don’t think it’s done.  I’m looking for one of two things for an entry – one entry would be on a filling of the gap just below 12 and another entry would be a breakout from the first consolidation period of at least two weeks.  Get more TRIT analysis here.

5. Lihua International (LIWA): Rounding out my top 10 IPO’s of 2009 list is another Chinese company which also IPO’d in September.  Lihua is relatively off the IPO radar of most and that’s just the way I like it.  The stock has also doubled in price following the IPO and has yet to digest gains.  I think a breakout from the first consolidation period of at least two weeks offers an entry point. 

Lihua makes copper wire for a variety of industries including automotive, electronics and telecom.  A great pick and shovel play on China’s continued growth.  While growth hasn’t been as spectacular as some China companies and the company can be inconsistent at times, the overall growth is very strong.  The company posted EPS growth of 72% in 2007, 38% last year and is on pace for growth of around 25% here in 2009.  Get more LIWA analysis here.

Honorable Mention:  NIVS Intellimedia (NIV), Opentable (OPEN), Medidata Solutions (MDSO)

Disclaimer: I don’t own any of the stocks mentioned above.

The first half of 2009 brought us some memorable IPO’s, but for the most part is was forgettable.  As we approach the final quarter of the year with a flurry of IPO’s expected to price in the coming days, I thought I’d rank what I think are the top IPO’s of 2009.  Please note that these are not ranked solely on performance, but rather on fundamentals such as earnings and sales growth, ROE and margins.  No, this is not an extremely scientific ranking.  You data junkies can crunch the numbers and run through your algorithms elsewhere

1. Bridgepoint Education (BPI):  Since turning its first yearly profit in 2007, this provider of online education to over 30K students has been on a tear.  In 2008, its EPS rocketed to .51/share vs just .06/share the year before and here in 2009 it’s expected to double to a little over a buck a share.  Sales growth has been equally impressive with quarter over quarter growth in the last 4 quarters of 183%, 175%, 163% and 127%.  Technically, it’s in the process of carving out a new base after more than doubling from opening day.  Get more BPI analysis here.

2. Changyou.com (CYOU): Sohu.com (SOHU) spinoff Changyou.com probably carries more risk than most of the IPO’s coming to market in 2009 because more than 90% of its revenue comes from one online game – the martial arts game Tian Long Ba Bu.  Ah, but with risk comes considerable reward and CYOU hasn’t disappointed.  It too has more than doubled since opening day and is now in the process of carving out a new base.  Growth really ramped up in 2008 following the launch of Tian Long in May of 07, vaulting from an EPS of .10 in 2007 to 2.16 in 2008.  That growth has been tailing off quite a bit, but remains strong.  Quarter over quarter EPS growth in the past 4 quarters was 999%, 200%, 97% and 19% last quarter.  The company hopes to get the growth going again with some new games which it has in the pipeline.  Get more CYOU analysis here.

3. Solarwinds (SWI): No, this isn’t a solar company.  Indeed, it’s a strange name for a company that provides network management software, but it certainly hasn’t stunted the growth of this Austin, Texas company.  This is a company that has been around for more than 10 years and boasts more than 80K customers.  After stumbling a bit in 2006, the company got back on track and has posted an EPS of .21/share in 2007 (400% growth over 2006), .38/share last year and is expected to post an EPS of .56 this year.  Technically, this is a stock that has broken out twice this year – the first time above 15.96 on June 29th and then again on Sept 4th from a bullish triangle formation.  It’s too extended for entry at this time.  Get more SWI analysis here.

4. Duoyuan Global Water (DGW): I think investors would be wise to take a close look at Chinese companies in the water management/treatment/infrastructure areas and DGW has to be one of those.  Guo Youzhi, general secretary of the China Desalination Association, has said that only 20 percent of industrial wastewater in the country is efficiently re-utilized and 80 percent is being simply discharged.  According to a March 2009 study by China Research and Intelligence, over 70% of Chinese rivers, lakes, and seashores, and 90% of its underground water supply in urban areas are polluted.  The lack of clean drinking water and pollution in general could very well stop China’s growth in its tracks but with crisis comes opportunity.  Duoyuan EPS growth nearly doubled in 2007 and 2008 and is expected to more than triple this year before flattening out next year.  Get more DGW analysis here.

5. Recon Technology (RCON): China + IPO + commodities = hot stock and Recon Technology is no exception.  This off the radar China IPO rocketed out of the gates on July 30th, carved out a bullish triangle formation, then broke out on Sept 3rd.  It’s up about 50% following that breakout.  They provide computer software to mining and petroleum companies in China (which include behemoths CNPC and Sinopec) which aides in extraction.  One caveat is that the company is very small with just over $10 million in revenues in the past year.  So while growth remains robust, it comes from a small base.  It will be interesting to read their earnings report on September 28th.  Get more RCON analysis here.

I’ll be back later this week with part deux and another 5 top IPO’s from this year.

It’s been more than five years now running Self Investors and it’s time for me to reflect and revitalize.  Blogging, researching and trading the markets can be incredibly demanding at times, particularly over the past two years and quite frankly, I’m exhausted and need a break.  I’m not breaking 100%, but am scaling back for a stretch, so likely no posts here at the Self Investors blog until after Labor Day.  Until then, good trading!

Amazon (AMZN) just made a terrific move after the bell today, making its largest purchase ever.  It’s acquiring Zappos.com for about $890 million in stock (based on today’s closing price) plus another $40 million in restricted stock and cash.  Zappos.com is the leading online shoe retailer that did a billion bucks in revenue last year and continues to grow at an exceptional pace despite a slow economy.  Considering the kind of valuations that are placed on the likes of Facebook and other social media sites that have trouble monetizing, $930 million looks like a good deal for Amazon. As for Zappos.com, you have to wonder why they didn’t attempt the IPO route with the market improving.  If the margins are thin at Zappos then perhaps this is a better deal for them.. we shall see.  It will be interesting to see a breakdown of the financials of Zappos.com in future earnings reports of Amazon. 

I’m a big fan of Zappos.com and won’t buy shoes anywhere else.  Great customer service.  Free shipping both ways and a huge selection.  They will continue to operate independently as a wholly owned subsidiary of Amazon with current management in place.  If Amazon is smart, they’ll let keep it that way. 

Both companies are big on customer service, making the purchase a good fit.  Here’s a video that Bezos did for Zappos employees discussing the importance of the customer.

>>> Click Here For Your Free Amazon Analysis

By Guest Author: Robert Williams, PhD, P.E.

This oil and gas industry perspective highlights only US-quoted drilling companies that provide offshore drilling activities in the ongoing search for that elusive black gold. There are a staggering number of different types of drilling rigs in operation around the globe and this summary is only for major US companies and does not include the independent drillers. Other UK, Norwegian, Danish, Japanese and many other countries have similar quantities of drilling rigs in operation on a global basis.

Before drilling begins, oil/gas companies will conduct geological surveys of an area to determine the potential for oil or gas deposits and to identify specific drilling targets. Geologic survey companies will be the subject of a future oil/gas industry perspective.

The oil/gas company chooses the location and supervises the operation, which may take as little as 15 days or as long as 12 months, of round-the-clock, seven-days-per-week operation to drill a single well depending on the complexity of the project. Drilling is for two basic types of wells—exploratory (to find new oil or gas deposits) and development (to prepare the discovery for production). Water depths range from 20 to 400 feet for jack-up rigs to up to 10,000 feet for semi-submersibles and drill-ships

Drilling rigs generally consist of engines, a draw-works, a derrick (tower), and pumps to circulate the drilling fluid (mud) under various pressures, blowout preventers, drill string and related equipment. The engines power the different pieces of equipment, including a rotary table or top drive that turns the drill string, causing the drill bit to bore through the subsurface rock layers. Rock cuttings are carried to the surface by the circulating drilling fluid. The intended well depth, bore hole diameter and drilling site conditions are the principal factors that determine the size and type of rig most suitable for a particular drilling job.  Draw works is the mechanical section that contains the spool, whose main function is to reel in/out the drill line to raise/lower the traveling block.

The following is a brief summary of the types of drilling rigs involved…

1) Jack-up rigs stand on the ocean floor with their hull and drilling equipment elevated above the water on leg supports. Jack-up rigs are used in water depths of 400 feet or less to provide stable drilling. At the drilling site, the legs are lowered and the hull is jacked up on the legs to the desired elevation above the water. The hull then serves as a drilling platform. After the well is completed, the hull is lowered into the water, the legs are elevated and the rig is towed to the next drilling site. Most jack-up rigs are equipped with cantilevers that allow the drilling equipment to extend outward from the hull over fixed platforms enabling drilling of both exploratory and development wells. The jack-up rig hull supports the drilling equipment, jacking system, crew quarters, storage and loading facilities, helicopter landing pad and related equipment.

2) Semi-submersible rigs are floating offshore drilling units with pontoons and columns that, when sea water is controlled to enter, cause the units to be partially submerged to a predetermined depth. Semi-submersible rigs can be held in a fixed location over the ocean floor either by being anchored to the sea bottom with mooring chains or dynamically positioned by computer-controlled thrusters. Semi-submersibles do not rest on the sea floor like jack-up rigs. Instead, the working deck sits atop giant pontoons and hollow columns. These float high in the water when the rig is moved. At the drill site, the crew pumps seawater into the pontoons and columns to partially submerge the rig, hence the name semi-submersible. With much of its bulk below the water’s surface, the semi-submersible becomes a stable platform for drilling, moving only slightly with wind and currents.  Like jack-ups, most semi-submersibles are towed to the drill site.

3) Drill-ships are specially built seagoing vessels that drill in waters as deep as 10,000 feet. Drilling equipment is installed on the deck, with the derrick normally placed in the middle of the ship. The well is drilled through an opening (called a “moon pool”) that extends to the water’s surface below the derrick. Because of their cargo-carrying capacity and exceptional mobility, drill-ships are especially useful for drilling exploratory wells. Although they are not as stable as semi-submersibles in rough water, they can be moved from location to location much faster. They maintain their position through mooring or dynamic positioning systems.

4) Barge rigs are towed to the drilling location and are held in place by anchors while drilling activities are conducted. The barge rigs has the crew quarters, storage facilities and related equipment mounted on the floating barge, with the drilling equipment cantilevered from the stern of the barge. When moved from one location to another, the barge floats; when stationed on the drill or work-over site, the barge is submerged to rest on the bottom. Typically, inland barge rigs are used to drill or work-over wells in marshes, shallow inland bays and offshore where the water covering the drill site is not too deep; barge rigs can operate at depths between three and 25 feet.

Jack-up daily rates are of the order of $70,000 to $150,000 whereas drill-ships and semi-submersibles charge daily rates of $250,000 to $400,000.

ATW – ATWOOD OCEANICS, INC is engaged in the business of international offshore drilling of exploratory and developmental oil and gas wells. ATW conducts drilling operations in most of the major offshore exploration areas of the world including: Arabian Gulf, Red Sea, Black Sea, Australia, East and West Africa, Southeast Asia, China, Far East, Papua New Guinea, India, Mediterranean Sea, Central and South America and the U.S. Gulf of Mexico.

>>> Click Here For More Atwood Oceanics Analysis

ATW fleet consists of eight active drilling units, which includes three semi-submersibles capable of drilling in up to 5,000 feet of water, one semi-submersible capable of drilling in up to 2,000 feet of water, one 400 feet cantilever jack-up, one 300 feet cantilever jack-up, one semi-submersible self-erecting tender-assist rig, and one submersible.

DO – Diamond Offshore Drilling, Inc. is a global offshore oil and gas drilling contractor. DO’s fleet consists of 30 semisubmersibles, 14 jack-ups and one drillship. DO offer a range of services worldwide including deep water, harsh environment, conventional semisubmersible and jack-up markets. One of DO’s significant customers is Petroleo Brasileiro (PBR) (see previous oil/gas industry perspective) accounting for over 10% of its annual total revenues. DO provides contract drilling services to the energy industry around the globe and is a leader in deepwater drilling in harsh environments such as the North Sea, the Gulf of Alaska, the Straits of Magellan, the south China Sea and Australia’s Bass Strait.  

>>> Click Here For More Diamond Offshore Analysis

ESV - Ensco International Inc. provides offshore contract drilling services to the international oil and gas industry and they operate a fleet of 46 drilling rigs, including 43 jack-up rigs, two ultra-deepwater semi-submersible rigs and one barge rig. Additionally, six ultra-deepwater semisubmersible rigs are under construction. Two semi-submersible rigs, as well as the additional six semi-submersible rigs under construction, are ultra-deepwater semi-submersible rigs, capable of drilling at depths of 8,000 feet or greater.

>>> Click Here For More Ensco Analysis

HERO – Hercules Offshore, Inc. provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Lift-boats, International Lift-boats and Delta Towing.

>>> Click Here For More Hercules Offshore Analysis

HP – Helmerich & Payne, Inc. is primarily engaged in contract drilling of oil and gas wells for others. The Company’s contract drilling business is composed of three business segments: United States land drilling, offshore drilling and international land drilling. The Company’s United States land drilling is conducted primarily in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Mississippi, Alabama, Utah, Arkansas, New Mexico and North Dakota. Offshore drilling operations are conducted in the Gulf of Mexico, and offshore of California, Trinidad and Equatorial Guinea. In 2008, the Company acquired TerraVici Drilling Solutions, Inc.

>>> Click Here For More Helmerich & Payne Analysis

NBR – Nabors Industries operates approximately 528 land drilling and approximately 763 land work-over and well-servicing rigs in North America. NBR’s offshore fleet consists of 37 platform rigs, 13 jack-up units and 3 barge rigs in the United States and multiple international markets. NBR also manufactures top drives and drilling instrumentation systems and provides oilfield hauling, engineering, civil construction, logistics and facilities maintenance and project management services.

>>> Click Here For More Nabors Industries Analysis

NE – Noble Corporation is a leading provider of diversified drilling services for the oil and gas industry. The Company performs contract drilling services with its fleet of 63 mobile offshore drilling units located in the U.S. Gulf of Mexico, Middle East, Mexico, the North Sea, Brazil, West Africa and India including five rigs under construction. NE has acquired five jack-up rigs and two semi-submersible rigs, plus the Company has options to purchase two additional premium jack-ups. In addition, NE has mobilized 9 jack-up rigs from the U.S Gulf of Mexico to international markets.

>>> Click Here For More Noble Analysis

PDE – Pride International is one of the largest drilling contractors which provides contract drilling and related services to oil and gas companies worldwide including West Africa (Angola), Latin America (Brazil), the Gulf of Mexico, the Middle East and India with a total of 44 rigs distributed as follows: West and South Africa: 2 ultra-deepwater, dynamically positioned drill-ships, 1 deep water semi-submersible, 3 mid-water semi-submersibles, 1 jack-up rig and 1 managed deep water platform ; South America: 4 deepwater, dynamically positioned semisubmersibles and 3 mid water semi submersibles; U.S. – Gulf of Mexico: 14 jack-up rigs and 2 managed deep water platforms ; Mexico – Gulf of Mexico: 8 jack-up rigs; Middle East: 1 deepwater semisubmersible and 2 jack-up rigs; India: 2 jack-up rigs and under construction in Korea - 4 ultra-deep water drill-ships. For example, Pride Africa, a dynamically-positioned deepwater drillship operates in 10,000 ft. deep water and with drill depths to 30,000 feet.

>>> Click Here For More Pride Intl Analysis

RDC – Rowan Companies, Inc. is a major provider of international and domestic contract drilling services and utilizes a fleet of 22 jack-up rigs and 30 deep-well land rigs. Jack-up rigs are used for both exploratory and development drilling and depending on the particular rig and location, RDC have the capability of drilling to depths of up to 35,000 feet in water up to 550 feet deep.  Seven new jack-up rigs are under construction with delivery expected in 2009, 2010 and 2011. 

>>> Click Here For More Rowan Companies Analysis

RIG – Transocean Ltd. is an offshore drilling contractor providing services from shallow water to the ultra-deepwater with 136 mobile offshore drilling units, plus an additional eight new-build rigs, 65 jack-up rigs and 68 drill-ships and semisubmersible rigs RIG provides drilling rigs for all types of petroleum companies in offshore drilling markets that include the U.S. Gulf of Mexico and eastern Canada, Brazil, the U.K. and Norwegian sectors of the North Sea, West Africa, Asia, including Australia, the Middle East, including Saudi Arabia, India and the Mediterranean.

>>> Click Here For More Transocean Analysis

VTG – Vantage Drilling Company is a development-stage international provider of offshore contract drilling services for oil and gas wells who operate one ultra-premium jack-up rig in Southeast Asia and has three ultra-premium jack-up rigs under construction. VTG has an agreement to acquire 45% ownership in an ultra-deepwater drillship. In addition, VTG manages two ultra deepwater drill-ships and one ultra deepwater semi-submersible, all of which are under construction, pursuant to construction supervision and management agreements.

>>> Click Here For More Vantage Drilling Analysis

Author has no current investment in these stocks and provides only the who, what, where, why but not the when to invest which is up to the reader’s individual strategic stock trading plan.

Author Bio

Robert is a valued contributor to Self Investors and provides great insight into the oil industry.  He has 40 years of experience which includes oil/gas engineering in crude oil/petroleum products/natural gas, refining, processing and pipelines on all continents, except South America and Antarctica, from Alaska and Australia pipelines to S.E. Asia offshore, from UK North Sea to Los Angeles fuel truck racks and from Romanian pipelines to West Africa FPSO.