+ Watch HP
on My Watchlist
The Company is primarily engaged in contract drilling of oil and gas wells for others.
stock in downtrend filled breakdown gap of 11/26/14
Strong earnings coupled with a beaten down price due to the recent decline in oil prices.
Graham Defensive Screen AAII
The financial statements look great, and at the same time the stock price is down because of the decline in oil prices. We are looking at a bear market in the world's largest industry. The opportunity couldn't be more obvious.
I would like to go on record today 3/6/2015 to say that the reason Warren Buffett sold his shares of Exxon was to allow the purchase of another company in the oil industry. I think he is accumulating shares of Helmerich & Payne. The shares are very undervalued and importantly to Mr. Buffett, offer a very strong cash flow. I estimate that the all-in purchase would run to about ten billion or higher.
A Grand Adventure Dividend Holding:http://boards.fool.com/the-grand-adventure-121197.aspx
dividend aristocrat presently beaten down by low oil prices.Cash on hand is larger than long term debt.
Oil will rise. Good dividend should create a floor if they can maintain it.
Helmerich & Payne (HP) is a well-run energy play that is mostly focused on US land production. While it has both undersea and land-based production in foreign countries, these should be viewed as avenues for future growth rather than the main event now. This company has a low P/E and high dividend, as well as reasonable growth prospects, and its stock price has been unfairly punished because of the recent tumble in the price of oil.
Helmerich & Payne (HP) has P/E 10, dividend yield 4.3%, 1% debt, beat S&P 500 capital for the last 15 years. 6 year dividend growth rate of 63%. Dividend increases for the last 42 years. Slowing buying in. Bought 1/5 of a position today.
Beginning start price $69.89.
I expect at least a point a week from this stock, for the next five years.
This is a real-life holding of mine through my investment club.Sales grew at a 6% rate last year. EPS has grown at an annual compound rate of 25% over the past 2 years. The pre-tax profit margin has been increasing in each of the past 3 years, as has the earned-on-equity. The debt has been falling for 6 years, and was below 2% in 2013, which is great. The current P/E is above historic averages, but lower than the highs set in 4 of the last 5 years, and at only a P/E of 13, this is not too outrageous. The PEG ratio is a very low 0.51. The company has raised its dividend in each of the past 4 years, and increased it by more than triple last year, so that is a great sign.I think this stock could grow 18% or more over the next several years. Add in a dividend that last year yielded almost 2%, and you could get a 19% to 20% annual return on your investment. That would double my money in about 3-1/2 years. That is what I am hoping for anyway. We'll see if my hopes pan out.
Jubak likes LNG. HP is in same industry group (Yahoo). Good ROE, low P/B. Momentum. Cold weather.
WILL EVENTUALLY SOLVE THEIR PROBLEMS AND GROW
More domestic rig demand should keep profits high and look for more regular and larger dividend increases as well as sales of the large stock portfolio that HP acquired in earlier years/
Energy, energy, energy!
This rig provider is gonna to be safe for a while with it's first mover advantage of AC rigs.That will protect it's margins for a few years by charging it at premium day-rates.
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.
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