Interesting News About DNOW

Laurie Frederiksen on

Many of your investment clubs received DNOW shares as a recent spinoff from National Oilwell Varco (NOV). DNOW is a company which is going to be essentially a supermarket of Oil Rig drilling supplies for those that drill for oil.

A man named Pete Merrill is someone many believe is the reason for the success of NOV. When the DNOW spinoff happened, he went with DNOW as the Executive Chairman of their Board of Directors.

Transocean (RIG) is a large offshore drilling company and will probably be a customer of DNOW.

What is interesting is this recent news release from Transocean:

https://finance.yahoo.com/news/transocean-ltd-announces-extraordinary-general-011005492.html

It's not clear from the release whether Pete Merrill be leaving DNOW to take the board position at RIG. That would probably not be a good thing for DNOW.

If, however, he will remain active for both boards, it might be good for DNOW as RIG is a customer.

Something to keep an eye on if your clubs now own DNOW.

Laurie Frederiksen
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