Shares of Atwood Oceanics have upside potential

Rare is the day you should sell an oil services play. And the reason is obvious enough: Despite increased engine efficiency, conservation and the rise of alternate energy sources, oil will remain a primary energy for propulsion and heat for at least the next 20 years. For that reason, I'm Reiterating my Buy rating for contract driller/oil support company Atwood Oceanics (ATW), first recommended on April 25, 2009 at a price of $21.82.

If you bought Atwood in April, you're up an impressive 79%. For those who missed the April Buy call, there's good news: ATW has considerable upside remaining.