You've been chasing this one down haven't you --- Ive been watching this stock for 2 years -- got in at $10.05 and sold at $20.50 recently -- I just knew that although the quarter was a blow out -- this stock would trade down -- my target to get back in was $16.50 and looks like we are here -- didnt have a order on the books for today because I didnt expect such a rapid nosedive this afternoon -- really makes you wonder when a stock dives 31% in a month on no news specific to the industry and disproportionate to its peers -- I have to wonder if this market is investing or simply throwing dice and hoping to leave the table better off than when you came
I miss some of the people on this board -- it used to be so active with some great insights -- I'll likely be back in Monday -- or perhaps the weeks news with regard to europe and our dismal jobs reports might pull this in a bit more
buying at 10 and exiting at 20 is fantastic and certainly with the stock at $16 you look like a shrewd trader not that you need to hear it from me.. Building around a core position in this name has also been rewarding. The exit as I see it is bigger than the trading nuances even tho they seem to be coming around more frequently due to as you've said the "macro" volatility. Since this company has been from Missouri( the show me state), I too agree that profiting from the major trading swings seen over the past 2-3 yrs has been the source of success.. However, The bigger reward in my book is continuing to evolve. I am looking for $35 on this stock and everytime I see the stock swing wildly obviously to the downside, I buy it. They are maturing as a company. They are gaining respect in the street as they continue to follow a disciplined approach to deploying capital. I believe this is the strongest small cap name in the space for those reasons as well the potential sale of assets as short term catalysts...and with a little luck, I'll see $35 within the next 12-15 months. Like several of our peers on this board, I have accumulated from $4 a share a little over 3 years ago. I trust mgmt to continue to reward shareholders as they want to grow certain segments of the business..while disposing of what they don't want which is profitable I might add.... Your experience should also tell you this name is proving to be a winner not a loser and as such you know what to do with winners. I shall continue to add as my goal is 1mm shares....The macro view does frustrate me and I would rather see this stock at $20 instead of $16 because the earnings warrant a better valuation. But I do agree with you and others that have commented on the Hi-beta and macro jitters so we'll just have to wait a little longer b4 my $35 target is reached...and I say good bye.... Unless the company does something stupid like the officers breaching their duties. As long as Cuba and Mexico need to develop in the Gulf,and the world needs oil, HLX will continue to gain.. Having a strong balance sheet helps all and puts them in a position to capitalize on not only developing the E&P side for sale but also leveraging the cash flow.. to build assets they want to use for the longer term. I see ebitdax from E&P divided by total debt and the funding cost of that debt as my measurement of a strengthening company....I hold companies that get stronger because the stock price usually tracks strength and not weakness... I think the next step is a lower beta as they continue to strengthen. I wouldn't be surprised to see an S&P upgrade either... sooner rather than later...
If you've been watching this for 2 years, you should know this name has a high beta. You also should know it is a turnaround opportunity with improving prospects. If you made your trade without knowing those points, congratulations on the gain; sometimes it's better to be lucky than good. ;) I've had this name for longer than you have and still have shares bought at sub-4. But because it is such high Beta and global and oil markets have been volatile with the uncertain macro environment that has persisted over that time, I've traded around a core - at times with options. I like it here better than 20.5 and also better than 10.05 with the change in its circumstances from the time it was priced there.