I want to initiate a position in ESV, and I had an order in at 53.60 last week and just missed it. They had a great quarter, but looking at their chart, the 50 day is about to cross below the 200 day which has me a little nervous that the stock might go down in the short term. Anyone have an opinions? I think long term this is a tremendous company, but I don't want to initiate a position too soon. Thanks.
If you are worried timing your entry into ESV and about a few dollars here and there in the daily/weekly/monthly pps of ESV, then this stock is not for you. ESV is a long term play.
I agree it should be $65, but I wouldnt say never (If it goes near there I am adding another 1k shrs - have 3k right now). There does not seem to be big MO behind the stock right now from the community, despite the great results and mgmt. I believe that is why mgmt is asking to to have $2B stock buyback authorization. The STOCK IS UNDERVALUED. Just because it is, doesnt mean it cant go lower. To me, this is just an opportunity if it does. Looking at analysts estimates on Yahoo, using the forward looking 2014 earnings the PE is 7.4. Really? That is insanely low, given the growth of the company. Rates higher, new platforms. Having to turn customers away. Divi over 3% and now possible buyback, which just raises EPS. ESV has the funds and is actively looking for ways to increase shareholder value. You will get it, just will have to be able to handle the dips as there is volatility in this stock. GLTAL
Sentiment: Strong Buy
You had that dip down to around 56.50. Unless oil goes down to $85/barrel, this stock will not go below 56 again. ESV is best in breed as far as drillers. Just take a look at recent earnings.
True it is, but the stock price just rose above the 200 day, so I think the trend is reversed. Also there is a transcript of the earnings call and questions on seeking alpha. Read it. Increasing rigs, increasing rates, they recently increased the divi, and still not paying a high % of cash flow out. Also they are about to approve a $2B share repurchase program. They do not say that they will initiate the actual purchase, but I think they are adding it due to the recent decline. This can help prevent such declines by having a ready buyer as well as add shareholder value by reducing outstanding shares. We own more. I had 2k shares at just under 58, and bought another 1k at 53.75. I will likely add more if it slips again. Doesnt seem like the big boys watch this one too closely and has some nice volatility for trading. I got out at 62, before buying back in at 58. I say from a company perspective, I think you are fine. Just your appetite for the current market and if able to stomach fluctuations. I for one, am very happy with ESV from the stock performance and opportunities as well as mgmts ability to appropriately address them.
Sentiment: Strong Buy