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Parker Drilling Co. Message Board

  • soulec soulec Apr 19, 2013 2:04 PM Flag

    If you want to sread your risk for GOM play

    HERO had a positive article in Barron's about GOM, increasing day-rates and the great management team at Hercules. I've talked about HERO on this board and the downside coming in Parker, it happens so yes gray, there are people you can trust.

    So if you can't walk away from Parker, adjust you position and mix in 70% HERO and 30% PKD, Parker is a slow accumulation at the 3.8X range or below. HERO has a BV of 5.57 so is trading just above BV, PKD is way below BV. In good times HERO will trade at 2X BV so that puts sp in low $11's, that's almost a double even after the run up from $3's. In good times, PKD will trade back up to 7.6X range. PKD has a international chain around its foot and Quail tools always makes or breaks Parker' earnings.

    So all in all, HERO has more potential with less risk, but PKD is considered a value today. It was not a value in the $5's, so yes analyst were wrong.

    Mix it up, limit you risk and increase gains by owning both, but all risk/reward considered and with increasing GOM/day rates, it favors HERO...IMO

    And don't forget Hurricane season is coming in the GOM, so plan for that also!


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    • Schwab rated HERO an "A", yet PKD was also an "A" and look what happened. It's very strange that Schwab's "A" ratings have been severely dropping after earnings. PKD, (HERO?), TC, OMN, and AAPL for starters.

      • 1 Reply to ggray1956
      • It's always been like that, more investor's are aware of the Hercules Offshore name where Parker was more of a family run business for years. Just because a stock is rated "A" by Schwab or anyone else USA, doesn't mean investor's will buy it.

        I've been trying to convince you and others PKD was going down and HERO up the last year or so. With that said, are you now willing to buy PKD at a huge discount?

        If you want to invest in the GOM with improving day rates for offshore drillers, they are the ones to look at. Today's announcement on Parker acquisition proves Parker is headed in another direction and its the best move they've made in years, international is killing them LT.

        From historical data, Parker is a buy LT below 3.8x or lower, on a two year view every gap down in Parker the last 16 years you would of made 80%+ on your money in 2 years below this level, that's way higher than what wall street returns over a two year period.

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