Offshore Thesis Is Breaking Out + BW Deep Dive

ROI monthly July 2023

Welcome to your latest edition of the ROI monthly.

Today I bring you my take on a stock that is IMO about to break out as it is set to triple its sales by the end of the year. Analysts estimate its 2 year EPS growth at over 200% and currently it’s trading just a tad over its book value (here defined as assets-liabilities).

Start your free trial today to access my complete video breakdown of this stock, one I am personally scaling into with a 6 figure investment so far and growing.

But first, a recap on my investment in offshore oil services from 2023 onwards:

1. Recovery of Oil Demand: As the global economy recovers from the impact of the COVID-19 pandemic, oil demand is expected to rebound. Offshore oil services will play a vital role in meeting this increased demand, especially as offshore fields have the potential for substantial reserves.

2. Resilience and Long-Term Potential: Offshore oil services offer long-term investment potential due to their ability to tap into significant offshore oil reserves. Despite short-term volatility, offshore production can provide stable and consistent cash flows over an extended period, supporting investment returns.

3. Technological Advancements: The offshore oil industry continues to benefit from technological advancements, such as advanced drilling techniques, robotics, and data analytics. These innovations enhance operational efficiency, reduce costs, and improve safety measures, making offshore projects increasingly attractive from an investment standpoint.

4. Transition Period for Renewable Energy: While the world is gradually transitioning to renewable energy sources, oil and gas will continue to be essential energy sources for the foreseeable future. Offshore oil services offer a bridge during this transition period, providing reliable energy supplies while renewable technologies mature.

5. Focus on Cost Optimization: Offshore oil service providers are actively implementing cost optimization strategies, improving project economics, and reducing breakeven prices. This focus on efficiency enhances the profitability and attractiveness of offshore investments, even in a dynamic energy landscape.

6. Geographical Opportunities: Offshore oil reserves are found in various regions globally, presenting investment opportunities in different jurisdictions. Regions such as Latin America, West Africa, and the Asia-Pacific hold significant untapped offshore potential, attracting investors seeking diversification and growth opportunities. Today’s featured stock operates from these areas of the globe.

The above shows a huge surge in the OIH, which is weighted more towards bigger, well known service co.s like HAL and SLB. Whilst both the smaller, more production-focused XLE and small cap index are yet to catch up.

What’s On Ben’s Brain?

In this segment I give you my take on a particular stock, including my investment thesis and valuation estimate.
In this month’s members-only section:

• My take on a stock in which I’m investing 6 figures+

• It has little to no debt, is set to triples sales volume Q4 this year and I believe could be a 4-5 bagger over the next few years.

Subscribe to the ROI club today and become a member and gain access to ALL of my analyses + see a live performance breakdown of the stocks I’ve looked at in the excel sheet below ( currently up 224 % Adj. at time of writing).

*Important* this is a hypothetical selection of assets, the author does not and cannot guarantee results. The author is NOT qualified to give financial advice of any kind and nothing in this publication is to be considered financial advice.

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Until next time, all the best & DYODD.

Benjamin.