Is Tidewater a Buy?

Tidewater (TDW), an operator of more than 500 offshore supply vessels that provide marine support services to the offshore energy industry, benefits from increased drilling and exploration activities that result from high oil prices. Its long-term price chart as of May 31, 2004 shows the cyclical nature of its business.

The chart of the current cycle as of May 31, 2994 shows the upside and downside of prices that peaked in early 2004. The right side of the chart shows rising prices. Is this the start of a new cycle upside? It's too soon to know for sure but if oil prices remain high and drilling and exploration activities increase, TDW could be poised for a new upside run. However if the upside fails, TDW could fall to the mid teens.