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C&J Energy Services, Ltd. Message Board

  • tradingishard tradingishard Oct 24, 2012 10:44 AM Flag

    If CJES had the same value as its peers.....

    A very similar company to Cjes, that being RPC, Inc (RES) just reported a small beat on estimates. Currently they trade at a 8.43 pe. Analyst estimates going forward are for a 23% drop in earnings next year which is a faster drop than estimates are for CJES. So analysts think RES earnings will drop faster than CJES.

    Looking at forward estimates, RES trades at a pe of 12.6

    For CJES to be fairly valued with RES, CJES would have to trade at a price of $39.94.

    Looking at BAS, another very similar company, their earnings are expected to drop 42%, which is twice as fast as CJES. Their forward pe would price CJES at over $59 per share.

    Darvy and other bears, therein lies your problem for even lower prices....

    Sentiment: Strong Buy

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    • Also-

      Analysts are projecting RPC revenues to drop 4% in 2013 from 2012.

      CJES is estimated to see revenues RISE 15.7%.

      BAS is estimated to see revenues drop 1.4% next year.....

      And yet...... CJES trades at about half the value of both!

      Not sure there is a cliff ahead for CJES...... they already fell of the cliff.

      Sentiment: Strong Buy

    • I would add that RES doens't expand it's balance sheet with mergers or aquisitions or adding new fleets. Res pays a quarterly cash dividend of $ 0.08.
      Technical support is holding, as am I.

      Sentiment: Hold

      • 1 Reply to cs917047
      • That is correct..... so CJES is even more attractive because they are still growing their potential for when the cycle turns back up. RES is stagnant. Also - RES loses 3% of it's balance sheet liquidity every year by sending it out of the corporate structure in the form of dividend payments. CJES keeps all it's cash - making it at a minimum 3% more valuable per year over RES.

        Darvy can bark all day long about the industry headwinds, but the bottom line is, either BAS is 75% overvalued and RES is 50% overvalued while CJES is fairly valued, or CJES is way under valued. The truth is probably somewhere in the middle.

        Darvy and other shorts might do well to buy CJES and short RES and BAS....... that is pretty much a guaranteed trade.

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