These prices were last seen when Hero's existence was in question. Now the future looks good and the next few years could be better than good.
The rebound off that bottom was impressive. Hero will establish a trading range between $3.80 and $4 imho. I think the over reaction was a bit much.
Was this report good? NO ! Was it better than the market expected? I say Yes!
That is one of the hidden benefits. Those rigs are being carried at levels well below market. Thus the true book value of Hero s higher which makes Hero even more undervalued than it appears. Hero bought those assets from HAWK during bankruptcy at steep discounts.
This makes Hero the most undervalued stock in this sector. There is NO MORE DOWNSIDE. It is UP from here unless the market wants to linger in the $3.90-$4.20 area a bit longer.
Back out the one time losses and they beat the 1 cent by a penny or 100%. Numbers numbers numbers
That is an increase of 10 days or 11%. That is great news. This means the worst is over imho. $weet !!!!!!!!!!!!!!!!!!!!!!!!
That is very good. That means that for the first half Hero had earnings of more than $1.18 per share. bitda.
This would be compelling information to an acquirer. $weet !!!!!!!!!!!!!!!!!!!!!!!!!
That was from the angola situation which hopefully not occur again.
That was an increase of 2c. Good cash flow was generated by Hero this quarter.
No I think demand in the gulf will improve dramatically and these rigs will be used by others. That is sad. Why couldn't Hero get the work for these rigs??
I am an optimistic sort so I would like to believe that the fleet report will be released with earnings and it is good. All that the fleet report needs to show is that something was added to backlog. Even the smallest amount would be bullish because that would show that the worst is over. Now Hero's release history recently has not been good so maybe the report will be poor. The market has already priced in something bad so I don't know. We will see tomorrow. I do believe that earnings will be better than expected but its the fleet report that will count more. Hummmmm
Hero will drop some if the shorts are right and bad news is coming. However, bad news is already reflected in the price of Hero shares currently. I doubt that there is any MORE bad news available. The market already knows that more rigs are coming into the sector. The market already knows that the discovery rigs do not have long term contracts. The market already knows that oil prices may not be going higher. BUT the market also knows that Hero has dropped almost 50%. All of the bad news could already be priced in. Any good news would send Hero higher. Bad news may just have no impact. We will see.
Then it is going to be released along with earnings. I can think of a few reasons this would be BAD and I can think of a few reasons that it would be GOOD. Hummmmmmmmmmm
Would be very unusual to release the fleet along with the earnings. It's either after the close today or before the opening tomorrow. If not then it will be along with earnings which they have never done.
I'll eat my hat if Hero reports only one cent. That is before one time charges, however. I am thinking we may see something like 10 to 15 cents in earnings BITDAO charges. If so we head higher. They(the experts) lowered revs by $13MM. IF ALL GOES AGAINST EARNINGS it would only be a drop of 8 cents. That would not translate into earnings of only 1 cent. We will see.