Yeah, I still have the tire marks on my back from NBRs. It's a classic trap. Looks very
cheap on growth, all the analysts have big targets and talk about how its cheap on
valuation despite the fact they are in the least attractive part of the drilling industry.
Also, all growth isn't equal and their earnings are lumpy. No one's paying a premium or
even a peer multiple for that. Plus when you float 2.5 billion in convertible debt (the
worst kind) for a buyback, well that's about the dumbest thing I've ever heard. Yeah,
let's take down debt to reduce the float only to pay interest on that debt and then dilute
the share base when the holders convert the debt into stock. Good thinking.

.

Last edited on: 01-05-2009 02:46 pm