Tommie holds NOV 36.05: Nevertheless, short-term sellers and buyers can still make profits on market speculations.

Therefore, I strongly advise investors not to play with this risky stock because of poor market fundamentals. In addition, oil and gas prices are not showing any signs of recovery so we can expect an even greater deterioration in NOV's financial and share price performance. The company is likely to report more losses in the third quarter of this year, which I believe will further destabilize its share price. The share price has declined significantly over the past few months and a selloff will only fuel further losses, based on current market conditions. On the other hand, investors also have a very small chance of making profits from its share price appreciation.


Eleanor:
In my opinion, NOV will have to either cut or suspend its dividends in the following quarters, based on its declining backlog and falling cash flows.

Jona:
This is clear evidence that the company is funding its dividends from external sources.

Marylouise:
After capital investments, NOV was left with $90 million of free cash flow, an amount that does not cover its dividend payments of $178 million.

Hilaria:
In the most recent quarter, it generated an operating cash flow of $194 million when capital requirements were around $104 million.

Davina:
However, the company's cash flow generating potential has been steadily declining, quarter by quarter.

Tari:
Thus, the company has no liquidity risk at present.

Maybelle:
Its short-term liabilities are standing at around $5.6 billion while current assets are high at $14 billion.

Zulma:
NOV's balance sheet is strong, which is allowing it to sustain its dividends.

Lucia:
With the significant decline in its share price, its dividend yield has reached 4.86% at present.

Rosalina:
Despite the killing environment, NOV has continued to sustain its quarterly dividend of $0.46 per share.

National-Oilwell (NYSE:NOV)
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