An interesting story is emerging with oil services companies, and it's not Transocean (NYSE:RIG), which while down in price and P/E, are still exposed to the Gulf oil spill, and depending on what is found out as to the cause of the explosion and resultant leak, won't be cleared of the cloud overhanging them.
One of their major competitors, Noble Corp (NYSE:NE), has evidently been lumped together with the oil industry exposed to the Gulf, although there is no connection or exposure they have to it situation.
But incredibly their P/E is lower than Transocean's, standing at 5.07 as I write. Transocean's P/E is at 5.28.
To me the entire question is what is the rest of the summer going to be like as far as travel goes, as gas prices are already dropping after the Fourth of July weekend.
Many think this is going to be a slow summer for travel, based on the poor economic conditions in the U.S. and other parts of the world, which will keep people from spending in a big way.
So depending on whether or not you think gas and oil prices are going to rise, will determine if Noble is a buy to you.
I think it is a stock that must be watched though, and it has no reason to be where it's at, and has a lot of upside potential.
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