Noble Corp: Lowering estimates on increased out of service time- Argus (39.61 +0.65)
Argus notes that they are cutting their 2012 EPS estimateto largely reflect increases to estimated out-of-service time. Noble's January 10 Fleet Status Report reflected a 68 day increase in operational downtime since its December 6, 2012 FSR, increasing total 4Q downtime to 277 days. However, NE remains on their Buy-rated Focus List as it delivered strong returns in 2012, and they are off to a strong start in 2013. Noble used the strength of its balance sheet and $14.8 billion revenue backlog to help finance the construction of ultra-deepwater and high-specification jackup rigs during a period of market weakness. While the share price has improved, they see further room for appreciation before the stock fully reflects the company's future prospects.
Personally, I'm not in it as of today. sold all shares. will wait until earnings or a dip to buy back
Well, I'll be leaving a fair bit of change on the table when 4000 get called away. Some of those shares are from getting put at 32 and change exactly a year ago. That's been the play book, for most of the past four years, and this is a reasonable result, if a little frustrating in the moment.
I would not be utterly surprised to see NE go up into the 40s this spring, but I'll sit and wait for a chance to re-enter. I expect mr market to give me a shot.
Thanks chute - always good to hear what someone's thinking, though I don't put much stock in analysts' thoughts - especially compared to the intelligence on this board. I ended up selling all today. With earnings coming out next week and likely to be pretty "meh" again, I figure we'll hit $35 before we hit $41.