This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

T. Boone Pickens Calls It Again

The combination of GlobalSantaFe (GSF) and Transocean (RIG) underlines what I've said in a few articles in the past: T. Boone Pickens knows what he's doing, and he's worth paying attention to.

GlobalSantaFe is up $5.50 so far this morning and Transocean is up more than $7. At Stockpickr we keep track of the investor's top holdings with the T. Boone Pickens portfolio.

GlobalSantaFe is Pickens' third-largest holding. In the quarter ending Dec. 31, 2006, he bought 524,359 shares of the company, bringing his total to 1.35 million shares. GlobalSantaFe provides offshore drilling services to the oil and gas industry and operates a fleet of rigs in the Gulf of Mexico, the North Sea, West Africa and the Middle East.

When oil was near $50 earlier this year, Pickens said it would hit bottom and rise. It did, and shares of GlobalSantaFe followed. The stock appears to have higher to run. Analysts are projecting the company will earn $7.17 a share this year and $9.16 next year, up from $3.77 in 2006, putting GSF's forward price-to-earnings ratio at around 7.

With operating earnings exceeding $1 billion and net debt of just $220 million, GlobalSantaFe makes an excellent takeover target. In a recent analyst note, Citigroup characterized GlobalSantaFe as a likely takeover candidate. Super hedge fund investor George Soros, whose holdings also can be found at Stockpickr, is a shareholder of GlobalSantaFe as well.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,999.80 -31.34 -0.18%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs