There has not been one iota of bad news about this stock. Every analyst polled about SPN calls it a screaming buy. The price is being held down so that the company can buy back more shares. They stand to collect 11.1MM shares at these price levels. That's 13% of outstanding shares.
Earnings should again be solid. The buyback will begin to take effect. The stock price will go up. This is a long-term play. Come back in 3 years and ask the longs how they are doing. They probably won't answer because they'll be on the golf course playing with their profits.
I think the buyback is a complete non event to date. IMO SPN is getting beaten down by shorts who believe that 3rd quarter earnings were negatively impacted by the slowdown in North American natural gas drilling activity and the uncertainty of hurricanes in the GOM. Drilling in the GOM has slowed in anticipation of hurricanes which fortunately did no damage in the Gulf and therefore didn't add to SPN's well intervention business backlog.
Once earnings are announced on the 29th, the shorts will cover and move on and SPN will have a nice bounce.
I'm long because I believe the long term international diversification scheme of management will be successful and our thirst for oil will continue to increase. In the meantime, I continue to lower my cost basis by selling out of the money calls on rallies.
BTW, there are other oil service companies with GOM exposure that are not doing as well as the RIGs, BHIs etc... For whatever reason sellers see them as ONLY GOM stories, IMO the selling in all of them is overdone
Analyst from ptr says this stock will hit 78 dollars in 1 year.
OVERALL RATING _S_P_N__h__a_s_a__c_u_r_r_e_n_t_O__v_e_r_a_l_l _R_a_t_i_n_g__o_f_A__(_H__ig__h_e_s_t_R__at_i_n_g_)_. The Overall Rating reflects consistent signals from PTR�s two proprietary measures of a stock�s attractiveness. SPN has a very high Appreciation Score of 96 and a very high Power Rating of 89. Here the Power Rating supports the Appreciation Score, and the Highest rating results. (See PTR RatingMap, and comments below). (For more on PriceTarget Research�s Stock Ratings, see: http://pricetargetresearch.com/backtest.jsp .) APPRECIATION SCORE (POTENTIAL PRICE CHANGE TO TARGET) Superior Energy Services� Price Target of $74 represents a 102% change from its current price of $36.43. This very high appreciation potential results in an appreciation score of 96 (only 4% of the universe has greater appreciation potential.) POWER RATING (LIKELIHOOD OF FAVORABLE PERFORMANCE) SPN has a Power Rating of 89. (SPN�s very high Power Rating indicates that it has a higher likelihood of achieving favorable investment performance over the near to intermediate term than all but 11% of companies in the universe.) Factors contributing to this very high Power Rating include: recent price action has been extremely favorable; the Oil & Gas Field Servics, NEC comparison group is in a strong phase currently; and the recent trend in SPN�s earnings estimates has been favorable.