NOV & RIG, Pritchard Capital's Top Picks

Pritchard Capital Partners recently added National Oilwell Varco NOV and Transocean Ltd. RIG to its top picks for the sector. Pritchard is expecting another solid quarter from the company in terms of EPS and orders. While Petrobras' PBR share issuance and upcoming elections likely garner investor interest in the name for rig kits and FPSO awards, Pritchard continues to believe that land rig orders, pressure pumping and coiled tubing equipment, along with its PS&S division and aftermarket sales drive solid performance in the interim periods. While Transocean is trading at nearly a 20% discount to its peers on next year's earnings, Pritchard believes the market has overreacted to the potential Macondo liability, inappropriately undervaluing the shares, and that RIG can fund potential liabilities, debt maturities, and the remaining capital commitments from its newbuild program through operating cash flows. Finally, investors are giving the name zero credibility for the likelihood it reinstates its share repurchase program and $1 billion dividend. NOV shares are trading at $44.26 RIG shares are trading at $62.67, 4% higher