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The Company is primarily engaged in contract drilling of oil and gas wells for others.
Diluted TTM earnings per share at 5.34, and a MRQ book value per share value at 36.28, implies a Graham Number fair value = sqrt(22.5*5.34*36.28) = $66.02. Based on the stock's price at $53.67, this implies a potential upside of 23.02% from current levels.
Too much turmoil, poor acquisition strategy, confusing marketing & service strategy. THis will take a long time to straighten out, if they're able to survive in the quickly changing technology industry.
World's largest PC vendor selling the ONLY OS that normal people use - Windows. None of that iOS/Android geek stuff for them.
Inability to innovate towards the cloud.
Given thatt fracing is here to stay and this stock's 5% jump on 7/2 based on crude price rise. The massive reduction in land rigs looking for gas has already been factored into the stock's price and natural gas prices should finally rise on utility demand if weather stays hot in midwest. Over the long term, HP's conservative debt load and techincal expertise have always kept it ahead of its peers. The only question is new mgmt.
Most advanced land rigs in high demand in US shale
Well managed company with a newer fleet of flex rigs that allow them to finish a job much quicker than their competitors. The differential allows them to charge a premium to other types of rigs while still giving the customer good cost savings. All said, they are a leader in U.S. unconventional drilling in the shale oil and gas fields. Meanwhile, their valuation is cheap here on a historical basis. My 18 - 24-month price target is $80 - $100.
Drilling more complex wells is a long term trend and HP stands to benefit from it.
HP thinks of the user of it's equipment-moving platform,etc. which produces shorter work times,more safety more efficient colletion of resourses.
Boy, did HP's BOD screw up. The President of the USA gets a BJ and is a hero. He fudges expenses and gets the boot. HP's loss as Markie is golden.
HP will cut cost to the extreme. They have most employees offshore at cheap wages. They recently merged with Palm and EDS broadening its brand.
Land driller Helmerich & Payne will benefit from exploration growth in shale deposits, which have been found to contain huge reserves that are now economically feasible to exploit - thanks to high-tech rigs such as Helmerich & Payne's FlexRigs that can drill horizontally. Offshore drilling woes in the aftermath of the BP spill may drive even more interest in the shale deposits.The FlexRigs, 98 percent of the company's active fleet, are in high demand and pricing power is strong as investment in the shale heats up. An MIT study released last week estimated there were 650 trillion cubic feet of natural gas in the shale deposits that can be economically developed at prices of $6 per million Btu or lower. Gas is currently trading below $5 but the MIT study predicted the use of natural gas as a percentage of total U.S. energy use would double, to 40 percent, by 2050.Don't listen to MIT - listen to the oil majors circling the shale patch. On Thursday, Reliance Industries said it would pay $1.36 billion for a stake in the Texas shale-gas assets of Pioneer Natural Resources. In April, the Indian oil and gas giant agreed to pay $1.7 billion for a 40 percent stake in Atlas Energy's shale holdings. And on Friday, Exxon Mobil closed its $35 billion purchase of XTO Energy, also a major shale player.The shares are not without risk however, as Venezuelan strongman Hugo Chavez recently nationalized 11 Helmerich & Payne rigs in a dispute over contract rates.At $38, Helmerich & Payne stock is trading 23 percent off its 52-week high at a PEG ratio of 1.68 and a long-term debt to equity ratio of just 11 percent.
HP HAS A YOUNG EFFICIENT DRILLING FLEET WHICH HELPS SNAG MARKET SHARE AND MAINTAINS A RELATIVE HIGHER UTILIZATION DUE TO STRONGER DRILLING DEMAND and LONGER DURATION CONTRACTS FOR THEIR HIGH TECH FLEX RIGS.
Stock is currently oversold do to market volatility. Oils recent upsurge is making this stock look very promising.
I am betting on oil/energy right now.
Teck will be making a comeback
This is one of the highest quality stock in the onshore drilling space. Following Buffet advice, buying quality at a reasonnable price.
If oil prices go up (which I believe will happen) this oil service company is well positioned.
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