Author Topic: National Oilwell Varco  (Read 30681 times)

giofranchi

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National Oilwell Varco
« on: December 19, 2012, 05:09:36 AM »
It seems to be the only wide-moat company in the Morningstar’s universe to still deserve a 5-star rating (besides Applied Materials, Exelon, and Western Union, which seem destined to a perennial 5-star rating!). Price / Fair Value is just 0.65. Furthermore, its moat trend seems to be positive, and its management very shareholder oriented. Please, find the Morningstar’s analysis in attachment.
Anyone follows this company and knows it well?
Thank you,

giofranchi
« Last Edit: December 19, 2012, 05:39:53 AM by giofranchi »
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ASTA

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Re: National Oilwell Varco
« Reply #1 on: December 19, 2012, 05:46:24 AM »
Hello Gio,

True story I almost bought this on Monday as I sold my GBLB and wanted to swap to this stock. However, being a cheap skate wanted to pay 64.89 but never happened. 
Regarding the company listened to some call's and was following Ted Weschler as he is most likely to have bought this for BRK spending 500h before he bought it is more then enough financial work then I could do. If it reaches this level again I will buy it I think. The company also intrigues me because of the monopoly it has and the ensuring natural resource boom in America.
Cheers, ASTA

giofranchi

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Re: National Oilwell Varco
« Reply #2 on: December 19, 2012, 05:55:24 AM »
Regarding the company listened to some call's and was following Ted Weschler as he is most likely to have bought this for BRK spending 500h before he bought it is more then enough financial work then I could do.

Hello ASTA! I wasn’t aware of the fact that Mr. Weschler bought this company for BRK! That’s a useful piece of information, and prompts me to dig deeper and investigate the company further!
Thank you very much,

giofranchi
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giofranchi

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Re: National Oilwell Varco
« Reply #3 on: January 05, 2013, 01:51:10 AM »
NOV's CEO has just been elected Morningstar's CEO of the year:

Quote
Merrill (Pete) Miller, CEO of Hare holding National Oilwell Varco NOV, was this week announced as the winner of Morningstar's CEO of the Year award. National Oilwell Varco remains one of my absolute favorites today. Beyond the company having an outstanding management team, today we have a rare combination of a company with a standout competitive position (the joke that NOV stands for "No Other Vendor" adequately describes the situation) and a relatively inexpensive stock (around 10 times our 2013 earnings estimate).

giofranchi
« Last Edit: January 05, 2013, 01:59:44 AM by giofranchi »
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Phaceliacapital

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Re: National Oilwell Varco
« Reply #4 on: February 13, 2013, 04:56:27 AM »
I follow it, was looking to start a thread but found this topic so happy to discuss :)

I think it's one of the three energy companies that Buffetts portfolio holds.

They are still net cash, have good FCFs, low-cost position and some switching costs.

We are still examining the competitors and the oil rig landscape before we enter a position though.
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boilermaker75

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Re: National Oilwell Varco
« Reply #5 on: February 13, 2013, 11:10:53 AM »
I follow it, was looking to start a thread but found this topic so happy to discuss :)

I think it's one of the three energy companies that Buffetts portfolio holds.

They are still net cash, have good FCFs, low-cost position and some switching costs.

We are still examining the competitors and the oil rig landscape before we enter a position though.

What was the recent hit to operating cash flow of "other working capital" (1,340M), and hence to FCF? Some one time event?

I know I could pull up the quarterly reports but from your post I figured you have the answer.

boilermaker75

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Re: National Oilwell Varco
« Reply #6 on: February 15, 2013, 07:35:33 AM »
I follow it, was looking to start a thread but found this topic so happy to discuss :)

I think it's one of the three energy companies that Buffetts portfolio holds.

They are still net cash, have good FCFs, low-cost position and some switching costs.

We are still examining the competitors and the oil rig landscape before we enter a position though.

What was the recent hit to operating cash flow of "other working capital" (1,340M), and hence to FCF? Some one time event?

I know I could pull up the quarterly reports but from your post I figured you have the answer.

I had a few minutes to glance at the last 10-Q. It looks like acquisitions caused a big part of the hit to the TTM FCF,

In the nine months ended September 30, 2012, the Company completed twelve acquisitions for an aggregate purchase price of $2,305 million, net of cash acquired. These acquisitions included:

    •   The shares of NKT Flexibles I/S (“NKT”), a Denmark-based designer and manufacturer of flexible pipe products and systems for the offshore oil and gas industry, acquired on April 4, 2012.

    •   The shares of Enerflow Industries Inc. (U.S.) and certain assets of Enerflow Industries Inc. (Canada) (“Enerflow”), a Canada-based fabricator and manufacturer of pressure pumping, blending, and cementing equipment for use primarily in Canada and the U.S., acquired on May 16, 2012.

    •    The shares of Wilson Distribution Holdings (“Wilson”), a U.S.-based distributor of pipe, valves and fittings as well as mill, tool and safety products and services, acquired on May 31, 2012.

    •    The shares of CE Franklin Ltd. (“CE Franklin”), a Canada-based distributor of pipe, valves, flanges, fittings, production equipment, tubular products and other general oilfield supplies to oil and gas producers in Canada as well as to the oil sands, refining, heavy oil, petrochemical, forestry and mining industries, acquired on July 19, 2012.

So without these acquisitions the FCF for the TTM would be about $2B? Anyone been following these acquisitions? Was this a good use of cash?

TIA.

Palantir

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Re: National Oilwell Varco
« Reply #7 on: February 15, 2013, 07:48:19 AM »
A very interesting idea giofranchi! I'll need to chew on this.
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DCG

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Re: National Oilwell Varco
« Reply #8 on: February 15, 2013, 08:24:59 AM »
It's been on my watchlist for a few years, but I've never owned it.

I'm curious what amount of it's book value is inventory or depreciating assets.

giofranchi

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Re: National Oilwell Varco
« Reply #9 on: February 21, 2013, 12:14:46 AM »
A new article on Seeking Alpha:

http://seekingalpha.com/article/1202381-national-oilwell-premier-e-p-service-company-at-bargain-valuation?source=feed

giofranchi

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