MDR - McDermott International - 2007/06/21 01:34
Discuss McDermott International, which is Tony Blair's stock pick here.
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j.g.mussey
Re:MDR - McDermott International - 2007/06/21 22:05
Tony,
I like MDR as I have mentioned to you before. I think this is a great play on the rapidly expanding global energy market.
Just a couple questions. Do you think the stock is getting too hot? Also, how sustainable is their low tax rate (5%)? I know I had been looking into that before, but I was just curious as to how many more years that will go on.
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adblair
Re:MDR - McDermott International - 2007/06/22 11:26
Well, I am sure that their tax rate will be increasing in the near term, especially since they have begun to incorporate Babcock and Wilcox's earnings into their financial results again, which almost doubled their earnings numbers. As a result, they will undoubtedly run out of ways to keep their tax rate that low in a short time.
To respond to your other comment, I don't think they are too hot right now. Even once you take into account their incredible earnings growth of late, their P/E ratio has actually come down from 20.81 to 17.37. In addition, they have a PEG ratio of just 0.97, so I don't think that they have gained too much value yet.
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