Love Thy Nabors

Someday, maybe soon, a prominent Wall Streeter will upgrade Nabors on the belief that the 2007 rig glut is in the stock, and that maybe things are not as bad as investors fear. Out of the blue, investor psychology will reverse, and these compellingly cheap stocks will explode as investors look to more balanced supply/demand conditions in 2008.

And, with shares rising in the face of declining fundamentals, it will be very difficult to get on board. I wouldn't be surprised if most investors miss this trade, just like they missed the truck stocks. Sometimes, a little bit of fundamental certainty can go a long way; unfortunately, the wrong way.

Be patient, Nabors shareholders. Even with a cyclical downturn starting, better days are Cummins.