RPC, Inc. (NYSE:RES)

pick and shovel company for other companies needing to frack.

Great stock, rough quarter. High insider ownership assures that management will try harder to get back on top.

I just bought 622 shares of this in real life. My reasons are as follows (and I would appreciate your comments):

1. I ran a screen for stocks with good future growth predicted over the next few years, good dividends, insider ownership, and a relatively low PE and forward PE. RES was near the top of the list.

2. The relative strength index chart was well below that line in the middle. While I do not fully understand this chart, at around 29 I do believe it was implying that RES was way oversold.

3. The long term trend of this company's stock price is UP UP UP. The CEO, Richard A Hubbell, seems to have done well. Looking at a one year chart, $15 seems to be a great price to get in as the stock has traded between 15 and 27 in the last year. And no insiders have sold any shares in the last year.

4. They earned 51c last quarter. This missed estimates and I hope it's not the start of a new trend. That being said, this was the second most they have ever earned and a very good quarter. If they (WE since I'm an owner now :D) continue to earn more than $2 a year as they did in 2011, this stock is trading at a PE of only 7.5 and an incredible value right now for $15 per share. No growth at all is factored in.

5. RES has a history of increasing dividends, earnings growth, stock splits and insider ownership. These are all pretty good things and indicate that growth is a priority. Buying 100 shares now could be worth $3000 in 2 years or less. Forward earnings of $2.30 in 2012 and $2.60 in 2013, with a few dividend increases, times a reasonable multiple of 12, brings us to a share price of about $31. This would be factoring in normal growth, a normal PE and normal dividend increases. And collecting those dividends feels good and the increases boost the stock over time.

The price of oil goes up and down and RES is dependent on oil prices. I don't know how to guess what oil will trade for in the future but it is a needed resource and I don't expect that to change much in the next few years. I'm right more than I'm wrong so I feel comfortable in my choice to invest in RPC, Inc., making a bet on the company rather than the commodity. Please comment with your opinions.

#5 Intrinsic value, Pitroski

Demand for their product. Should be able to increase sales accordingly and beat the market. Looks to be a great long term investment.

This a great long term stock with earnings and growth yoy.

I recommend this one for your portfolio.

Shorts are high around 15-16% of float.

I have done well with this stock since 2008.

The increasing accounts receivable raises a flag. I don't know the reliability of their debtors.

The Equities Market has been particularly difficult this week, in view of the European Debt Issues, fear over a double dip recession, and the potential for a slowdown in China.As a result of the decline in the price of oil, the equipment and services stocks have been hit very hard.RPC Inc. appears to represent good value.It currently sports an ROE of 43%, Debt/Cap Ratio of 21%, Long Term EPS Growth of 18.2%, and a P/E of 10.62.

a buy out is going to happen in the near future at 35 bucks a share . see why at http://www.madmoneyfund.blogspot.com/

oilfield services

World will need more oil with emerging economies increasing demand. US production is increasing through new horizontal drilling and fracking techniques used to extract oil from existing wells that were previously believed to be tapped out and from new shale discoveries.

Drill baby, DRILL!!!!! Did anyone surf the net and see all those new young billionaires that have been selling pipeline in Texas?

Better acceptance of fracturing the reservoir.

Lots of things to like here. But I'd like to get a better sense of the big rise in short interest. Does anyone have one?

Ridiculous valuation due to unrealistic forward growth assumptions.

value line

Stay with this exploration company for a while, solid structure and more room for growth

As confidence in the recovery breaks down, equities will fall and the dollar will rise. Financials, commodities, and cyclical stocks will be the most negatively affected. P/E Ratio of 480.

Other CAPS members have scored well when picking this stock to outperform above $12, so IMHO at $7.05 it's a penny stock from heaven. Also we are not going to be free of our dependence on oil globally anytime soon, and this might be a good hedge against inflation of the US dollar.