RPC, Inc. (NYSE:RES)

A strong balance sheet shows a continued lowering of debt to assets. Decent P/E and a solid dividend yield. As practices of fracking in shale continue growing, and based on the lack of legislation pushing for alternative energies, oil should have no problem thriving in the next few years.

Owners are old and might sell soon. Buy out will raise price.

First quarter- results were as expected, top line growth attributed to an enhanced fleet of equipment, higher activity levels, and a favorable job mix in several service lines. SG&A costs as a percentage of revenue were 8.9% in the 1st quarter, compared to 9.4% from a year ago. In an attempt to reduce dependency on foreing oil, U.S. companies continue to avidly invest in stateside drilling activities. Domestic rig count increased 20% during the course of 2011.

Profitable small cap, pays dividend, large insider ownership

It's fundamentals are extremely well balanced, and very solid. It was punished too severely for the 2011 Q4 earnings disappointment. It will perform well for the next couple of years.

Based on a stock screen: insider ownership, dividend, mid-cap, high CAPS rated over three years

Diversified in properties and services, should have steady revenue growth in coming years

Contrarian stock screener

Stocks like RES and BHI have been beaten down due to the depressed nat gas price causing a slow down in drilling activity by the producers. However, the global rig count is just slightly off. While the results of this past quarter may be affected, these companies are way undervalued with excellent fundamentals. RES should rebound by mid-summer to a more respectable level.

under valued. a normal winter will result in hugh increase in drilling for nature gas

RPC Inc. is fundamentally a very solid business. The CEO has held that position for 9 years and has been president for 25 years, while the CFO has held his positions for 16 years. Together, the corporation's website states they hold 1.5M shares, or slightly under 1% of the shares outstanding (but the CEO/CFO holdings may not have been adjusted since the split). Thus, the officers have sizeable holdings, if not massive ones. Most insider purchases came back in 07-08, but only I can only see two sales, also around that time ($1.2M and $300K), and so management has maintained its positions for over 5 years. The dividend yield is solid, debt is low, payout is low at 16.0, and return on equity and assets are very good. Toss in a 21.83% EPS 5 year growth rate plus an 0.3 PEG ratio and continuing growth of hydraulic fracturing and this company is on an upward trajectory. RPC also has oilfield equipment operations and safety training. The two main concerns are 1) a fracking ban and 2) that earning beats have stopped the last 3 quarters after at least 4 in a row and the fourth quarter had an earnings miss. RPC was spun off by Rollins 28 years ago and had businesses all over the map till around 1999 when management states it divested these non core operations to become a "pure-play oil and gas services company." Thus, this is a healthy company with great management and an established track record, not a 5 year old operation that just became profitable. If RPC had a P/E of 20 to account for its stellar earnings growth, I would not have put real money on this one, but even if the next 5 years see "only" 10% growth, this is still compelling opportunity. While oil and natural gas operations are difficult to separate into x% and y% for each, I do think RPC has a cushion of oil services in the event of a moratorium

Just a first little tip-toe back into the energy sector.

pick and shovel company for other companies needing to frack.

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.

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/