Robin Shoemaker thinks there's still money to be made in the stocks of companies that make oil-drilling equipment -- stocks which have gained as much as 90 per cent in the last year.
"Their price-earnings multiples are still low," the Bear Stearns oil equipment analyst told CNBC. "I believe that they're still undervalued and have upside in 2008."
Shoemaker especially likes Transocean.
"It's the leader in deep-water drilling," he explained. "It's the largest offshore drilling contractor, and I believe it has significant earnings upside between 2008 and 2010, due to the increased demand for deep-water drilling and upward pricing momentum in the offshore drilling market."