Sep 18, 2014 (StockWatch) Spotlight
Hercules Offshore (NASDAQ:HERO) is one of today's worst performing low-priced stocks, down 6.5% to $2.84 on 1.5x average daily volume. Hercules Offshore has traded 4.9 million shares thus far today, vs. average volume of 3.4 million shares per day. The stock has underperformed the Dow (-6.5% to the Dow's 0.5%) and underperformed the S&P 500 (-6.5% to the S&P's 0.4%) during today's trading.
Hercules Offshore share prices have moved between a 52-week high of $7.96 and a 52-week low of $2.25 and are now trading 26% above that low price at $2.84 per share. The 200-day and 50-day moving averages have moved 1.08% lower and 1.72% lower over the past week, respectively.
Hercules Offshore (NASDAQ:HERO) has potential upside of 66.3% based on a current price of $2.84 and analysts' consensus price target of $4.72. The stock should run into initial resistance at its 50-day moving average (MA) of $3.46 and subsequent resistance at its 200-day MA of $4.56.
Hercules Offshore, Inc. offers offshore contract drilling, liftboat and management services. The Company operates in the United States Gulf of Mexico, the Middle East, India, Latin America, West Africa, and Malaysia. Hercules serves oil and natural gas exploration and production companies.
Sep 19, 2014 (MYtrend(R) News Watch via COMTEX) --
Below are the three companies in the Oil & Gas Drilling industry with the lowest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.Hercules Offshore ranks lowest with a a P/E ratio of 5.62. Noble is next with a a P/E ratio of 6.70. Transocean ranks third lowest with a a P/E ratio of 6.89.
Vantage Drilling follows with a a P/E ratio of 7.12, and Atwood Oceanics rounds out the bottom five with a a P/E ratio of 9.21.
MyTrend recommended that its subscribers protect gains by selling shares of Hercules Offshore on June 23rd, 2014 by issuing a Downtrend alert when the shares were trading at $4.18. Since that call, shares of Hercules Offshore have fallen 39.2%. We are now looking for when a new Uptrend will commence and will alert MyTrend subscribers in real time.
Hero has $191MM in cash. So if one bought at the close of $2.54 one paid $1.36 a share. For that $1.36 one would buy $14.28 worth of assets minus the cash or $13.10 worth of assets for $1.36 $weet ! Lets not forget the debt and liabilities however. The assets of $13.10 would have to be reduced by $9.01 of debt and liabilities. So for that $1.36 one would buy $4.09 worth of a business(which has NO good will in the figures). That is not the end, however. Hero has about $1B in backlog or about $6.21 a share. Most revenues are valued at 1 times revs BUT for the sake of this discussion to a potential buyer we will discount the future cash flows by 50% or $3.10. So for an acquirer be it in a takeover or a stock purchase one will pay $1.36 a share for $7.19 worth of business discounted. Without the discount one receives $10.30 for $1.36. Makes a buyout at say $7 a steal. Not to mention that if a company wants to get an inroad to the Saudies or the GOM then one could add some goodwill to those figures to make it even more attractive. $weet !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I just bought a ton of shares at $2.74. This will be my LAST BUY of this company. I have reduced my average price and now will wait for the upcoming rally back to $7-$8. The shorts did what they expected and now will be covering or even going long. There is no more down side to control by the shorts. Game over they won. From here on it will be the longs that have the big advantage and therefore upward momentum. LAST CALL ladies and gentlemen LAST CALL.
No more shorting will be done. The shorts are covering today as some longs are forced to liquidated. They did get the shares down pretty good. Expect about three-four days as longs either pony up more money or sell then expect back up.
With Hero under $3 my account just went into a margin call. Expect a decline as longs liquidate. Hopfully this is the end BUT as the longs are forced to liquidate I can't be sure where the bottom will be.
If for scrape or parts then its good. No competition and I'm sure they were carried at a price that will give Hero a tax asset.
They sold two cold stacked rigs. These rigs are going to be drilling somewhere, right?? Then why can't Hero get those contracts instead of selling those rigs which I guess will compete with Hero's rigs for work????? Please explain this to me.....I am a bit dense.
Triumph got 21 days of standby rate of 95% and then they are scheduled for India, Sri Lanka and UK-North Sea operations. No days mentioned, however SO #$%$ does it mean???????????????????
Triumph is being prepared for North Sea operations. Does that mean that there is a contract coming soon???????? Utilization was up from 43% to 52% with day rates increasing SOME 15%. NOT GREAT BUT NOT BAD. Humm !!!!!!!!!!!!
With the fleet report due soon the shorts are hoping its lackluster enough that they can push the close under $3. The sector has been weak for the last 3 months with Hero's expected earnings dropping to some 36c. Even at 36c Hero trades at 8 times earnings and it should mark the cycle low for earnings. Any close below $3 should be bought with both hands. My LAST purchase will be done under $3 if it occurs.
The market makers have not been trading Hero as it should. In other words when there is more selling the shares have rallied and vise versa. Hero is one of the most abnormal stocks out of the 5,000. The study believes that this is bullish. Study was done by "Buyins". I don't know.
Sep 09, 2014 (MyTrend(R) News Watch via COMTEX) --
Below are the three companies in the Oil & Gas Drilling industry with the highest sales growth. Ocean Rig ranks highest with a sales growth of 69.9%. Vantage Drilling is next with a sales growth of 28.8%. Noble ranks third highest with a sales growth of 21.9%.
Unit Corp follows with a sales growth of 19.2%, and Hercules Offshore rounds out the top five with a sales growth of 14.9%.
Sep 15, 2014 (MyTrend(R) News Watch via COMTEX) --
Below are the three companies in the Oil & Gas Drilling industry with the highest future earnings growth. The growth of earnings per share (next fiscal year estimated vs. current fiscal year estimated) is important to gauge future profitability and relative value. Higher EPS growth generally justifies higher earnings multiples .Hercules Offshore ranks highest with a future earnings growth of 97.3%. Rowan is next with a future earnings growth of 88.8%. Nabors Industries ranks third highest with a future earnings growth of 79.3%.
Parker Drilling follows with a future earnings growth of 66.0%, and Patterson-UTI Energy rounds out the top five with a future earnings growth of 51.2%.
MyTrend recommended that its subscribers protect gains by selling shares of Hercules Offshore on June 23rd, 2014 by issuing a Downtrend alert when the shares were trading at $4.18. Since that call, shares of Hercules Offshore have fallen 22.2%. We are now looking for when a new Uptrend will commence and will alert MyTrend subscribers in real time.
Could not help myself. Hope the shorts do not push it down to close under $3. If they can't then a rally will be explosive and extensive. Hope Hero can deliver some good news. IT WONT TAKE MUCH !!!!!!!!!
The last 3-6 months have had the energy sector underperforming. If we can have the next 6 months with over performing, which happens usually happens when one gets ahead of the other, then Hero will be looking good by April/2015.
The fed has made it clear that it will maintain easy money. This supports the price of oil which supports the sector. We are coming into the season for drillers and this helps. We need Hero to sign contracts and all will be well.