Cameron International Corporation (NYSE: CAM) is an oilfield equipment manufacturer and one of the world's leading suppliers of subsea valves and fittings. This equipment controls the flow of fluids from an oil well and prevents their release to the environment. The movement of oil exploration into deeper waters is a trend that requires new equipment to be built and old rigs to be refurbished. Subsea equipment is in high demand, and given that the average age of a drilling rig anywhere in the world today is 25 years, the market is ripe for companies that provide the equipment needed for upgrades. Both these trends could potentially benefit Cameron, as the company is a major manufacturer of rig hardware.

The company's focus on large, expensive orders, however, means that it is not protected against volatility in any of its markets, like compression or subsea technology. This is a problem when competitors outbid Cameron for new contracts.

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