What Everyone on Wall Street is Talking About
There is a lot of talk in the investment community about stock market opportunities in the wake of Hurricane Katrina. I have to admit that it doesn’t quite feel right talking about stocks that should do well in the aftermath of such widespread devastation.
Among financial types, however, it’s what everyone is talking about, and so is the media.
There is one company that has been riding the investment boom in oil and gas development in the Gulf of Mexico, and it also has a lot of expertise in hurricane repair work.
The company is called Global Industries Ltd. (NASDAQ/GLBL) and it’s based Louisiana. In essence, the company is a global offshore construction company. The company mainly provides marine construction services, pipeline construction, platform installation and removal, sub sea construction, diving services, as well as support services to the offshore oil and gas industry in the Gulf of Mexico, West Africa, Asia, Latin America, and the Middle East.
In its latest second quarter, the company’s earnings grew to their highest level since the second quarter of 1988. Its financial results are being positively impacted by continuing Hurricane Ivan repair work in the Gulf of Mexico and increased activity at its Asia Pacific and Middle East operations.
During the second quarter of 2005, the company booked $286.0 million of new work, resulting in a total backlog of $436.0 million as of the end of June. This backlog is the largest in the company’s history.
Many on Wall Street expect this company to obtain even more contracts due to Hurricane Katrina’s effect on oil and gas platforms in the Gulf of Mexico.
It’s still too early to evaluate the scope of Katrina’s devastation, but there is no doubt that governments at all levels will be spending billions for reconstruction. Obviously, no amount of money can account for the human toll.