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

5 Bargain Bin Stocks You Need to Buy

Rowan

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Last up is oil and gas driller Rowan (RDC). Rowan has been providing specialized drilling services and equipment for oil and gas companies for the better part of the last century, an asset-intense business that has the potential to hemorrhage cash under the wrong conditions.

But Rowan has gotten it right in the last decade -- and the firm stands to benefit from sustained high oil prices in 2012.

Rowan didn't always cut a fine figure for investors; over the course of the last several years, though, the company has shed its less attractive businesses and used the proceeds to focus solely on higher-margin offshore drilling. That major shift in focus means that RDC is one of the more speculative names on our bargain bin list, but as you might imagine, that means Rowan may not be trading so cheaply for long.

Profitability has been anemic in the last year as RDC brought new rig assets online. That means that profit metrics like P/E don't provide a very accurate picture of this stock's value. But price-to-book value does; presently, the firm trades for a P/B value of just under one. Compare that to rival drillers that typically trade for a P/B multiple of 2 or more.

With high oil prices sending demand for deepwater rigs on the rise, RDC should be a major beneficiary. Keep an eye out for earnings on May 2.

Rowan shows up on a list of 15 Stocks to Rdie the Energy Boom of the Next Decade.

To see these value-centric names in action, check out the Bargain Bin Buys 2012 portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.
6 of 6

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 17,330.36 +64.37 0.37%
S&P 500 2,018.50 +7.14 0.36%
NASDAQ 4,606.8720 +13.4470 0.29%

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