On Oct. 1 I watched NOV carefully with the hope of buying low. It opened at $77.34 (while I was snoozing here on the West Coast) and by the time I woke up it popped above $78.
That doesn't bother me because as the following one-year price chart demonstrates, NOV has had quite a run since late April. The trailing 12-month (TTM) Ebitda line suggests earnings should be robust when NOV next reports on Oct. 25. Still, I'm willing to wait for a better entry price.
In late September NOV announced it plans to spin off its distribution division into a separately traded public company sometime in 2014. The spinoff could be an upside primer for the stock price.Historically, we've learned that spinoffs have a tendency to generate higher total value for shareholders. Within a year or less the original NOV and its spinoff are likely to have a higher combined value than NOV's current price. Jim Cramer and Stephanie Link of Action Alerts PLUS wrote about the spinoff, "...
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