On January 23, a new Reuters article stated that Pamplona Capital has disclosed an 8.8% stake in Nabors Industries and that it is having discussions with the company. This could be another sign of major undervaluation and if Pamplona Capital becomes an activist investor that pushes management to create shareholder value, this could help boost the share price.
Two insider buys were announced today. Newly appointed director Kotts bought 120,000 shares of NBR at $14.95. Director Wolf bought 11,000 at $14.90 and a additional 7000 at $14.78. While potential risks remain, such as possible low demand for natural gas drilling, another recession, management execution, and other risks that are inherent in this industry, the upside potential seems to outweigh the downside. With the shares trading at a below market price to earnings ratio, below book value which is $20.13 per share, and with some takeover potential, this stock makes sense to consider, especially on any pullbacks.