Atwood Oceanics ( ATW) is a small contract deep-water oil driller with a fleet of nine rigs, made up of both jack-up and semisubmersible rigs. Much of its work is done internationally. "We feel there is going to be a big, deep-water drilling-rig shortage by 2013 and when that happens, the day rate (of rig leases) will go way up," said Hodges. "It's hard (for new companies) to get into this business so they will have tremendous pricing power." He said his firm considers its shares cheap as they are trading at a price of less than 10 times projected earnings. The stock is up 0.6% this year and 49% over the past 12 months, giving it a $2.6 billion market value. Its average annual return over the past 10 years is an amazing 18%.