NEW YORK (TheStreet) -- Unless you're buying a company's shares for income and a worthwhile dividend you're most likely buying because you believe the stock has significant upside growth potential.There are many metrics and gauges that help us determine when a stock is a good value and has been unjustly overlooked by the investment community. Some people listen to financial analysts, some receive information from their brokerage firm, and many rely on their own experience, research and instincts.
Ready to EnergizeOne sector where a number of quality companies are not currently being treated with much enthusiasm or respect is the energy sector. Many of these companies are trading at such low valuations that if you didn't know the ins and outs of how they make money you wouldn't realize that the stock should be priced more generously.
As of March 31, 2012, McDermott reported total assets of approximately $3.1 billion. Included in this amount was $899.5 million of cash and cash equivalents, restricted cash and investments.This helps explain why company insiders want to own shares of MDR. Two institutions are also big believers in the prospects for this company. Artisan Partners Limited Partnership and FMR (a.k.a. Fidelity Investments) each own close to 6% of the outstanding shares of MDR as of March 30, for a combined investment of almost $357 million dollars. MDR has a market cap of only $2.14 billion, so it isn't unreasonable to imagine a much larger company acquiring them to expand their international operations. Two names that come to mind are Schlumberger ( SLB) and Halliburton ( HAL).
Net working capital, calculated as current assets less current liabilities, was $605.1 million. Additionally, total equity was almost $1.8 billion, or approximately 58% of total assets, with total debt of $92.2 million.