Superior Energy Services, Inc. (NYSE:SPN)

CAPS Rating: 5 out of 5

A diversified provider of specialized oilfield services and equipment that focuses on serving the drilling-related needs of oil and gas companies.


Player Avatar Peter333 (< 20) Submitted: 5/23/2007 9:05:54 AM : Underperform Start Price: $40.13 SPN Score: +91.53

Insider sales by 3 top execs on 5/21 and 5/22 suggest the mid-term performance won't be able to keep up with the expectations created by the past few quarters. Suggests to me this stock won't continue its present run.

Member Avatar bluejonnyd (23.61) Submitted: 11/9/2007 12:17:32 AM
Recs: 0

More info gives pause as well:

A low Altman score, 2.5, while not particularly bad, raises an eyebrow. In the past 6 months, insiders have sold off about 7% of the shares that they own. And there is the fact that while the company looks good with a Grahamite calculation, they are absurdly overvalued when you look at a free cash flow-based calculator. The price to free cash flow ratio is about 277.

All this isn't enough to outright short it, in my opinion, but sure enough to avoid a purchase.

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