Barron’s Analyst Naureen Mailik Recommended Rowan.

Track her picks at:

http://trackthepros.com/categories.php?category_id=692

a. At a time when these stocks are at or hovering near multiyear lows, Rowan sparkles with potential. The company owns and operates what is seen as one of the highest-quality fleet of jack-up rigs in the world. Primarily, Rowan’s jack-ups, named because they have legs that rest on the ocean floor, can drill some of the deepest offshore wells in the world.

b. However, the company’s shares have declined 21% since touching a 52-week high of $47.94 on June 30 and are trading at a mere 7.2 times 2009 earnings estimates.  Drillers typically trade at 10-20x.

c.  Contract renewals for existing rigs and the delivery of nine new jack-ups through 2011 will expand Rowan’s fleet by 40%, in turn driving double-digit earnings growth at the company.

d. The anticipated sale by year end of