Another good sign. Hero is trading at one third book. Very undervalued.
Loss for the quarter was $88,553K and impairment charge was $82,507K or a loss after this one time event was $6,046K or 3.7 cents a share. This is actually better than the average.
Not only did the market price in poor reports for Thursday, it looks like they are pricing in a poor report for October too.
Looks like Hero is tracking its past performance. Rally before earnings and then drop. The rally is from investors that want to cover in case there is any good news. This usually leads to a drop. With an expected poor report I doubt we will see anything different this time BUT we will have to see.
Hercules Offshore (NASDAQ:HERO) was downgraded from Outperform to Market Perform at Cowen and Company today. The stock closed yesterday at $1.85 on volume of 7.6 million shares, above average daily volume of 5.1 million. Hercules Offshore, Inc. offers offshore contract drilling, liftboat and inland barge 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.
Potential upside of 127.9% exists for Hercules Offshore, based on a current level of $1.85 and analysts' average consensus price target of $4.22. Hercules Offshore shares should first meet resistance at the 50-day moving average (MA) of $2.75 and find additional resistance at the 200-day MA of $4.13.
Over the past year, Hercules Offshore has traded in a range of $1.42 to $7.54 and closed yesterday at $1.85, 30% above that low. The 200-day and 50-day moving averages have moved 2.25% lower and 4.64% lower over the past week, respectively.
We can expect a loss for the quarter and a few more rigs being idled. Anything better than the expected would be a start since the market has discounted the worse. I am not expecting much but Hero is trading at a fraction of book value which could lead to great gains if purchased here. Let's see what tomorrow brings in the way of market reaction.
And now to lighten up at $1.77. Great advise. No wonder these firms have to constantly bring in new money. They keep burning it up. Great call - NITWITS. Must be related to the_jew
July 2013; Cowen puts out an outperform on Hero with a price target of $7.65. February 11, 2014 Cowen reiterates its outperform rating on Hero. September 22, 2014 Cowen cuts its price target to $4 on Hero but maintains its outperform rating. And F#C((KKING NOW they cut their price target to $2 and lower their rating to market perform????? Who are they kidding. GOOF
The_jew_is a GOOF. Cowen put out a BUY on Hero in July of last year at $7. Since then Hero has dropped a ton and NOW when their clients have lost a ton listening to them they want their clients to lighten up?? THE_JEW is a GOOF !!!!!!!!!!!!!!!!!!!!!!!!!!!!
Cowen must have been in on the scheme to defraud shareholders by increasing the number of shares of Hero stock by shorting. Over 30 million extra shares were created by the shorts to drive the share price down to these levels. Cowen must have been getting scared with the rally of the last few days. Are you listening SEC?? Are you listening to the manipulation??
To tell clients to lighten up their positions AFTER the stock has fallen over 77% is CRIMINAL. If I was a client of that firm I would go straight to a Lawyer and SUE COWEN for breech of logic and aggravated stupidity
I have been investing in the oil sector for a long time(over 30 years), and if there is one thing I can state with absolute certainty is that the oil market makes extreme moves at times to levels never even contemplated by the experts. In the ninety's oil went UNDER $20 a barrel. In 2008 it dropped to UNDER $35 a barrel. I have no idea where oil will drop to but I do know that the Saudis were trying to maintain market share in the ninety's.
I will not predict that Hero has bottomed but one could make a good argument that if someone paid say 80 cents over cash or about $2 a share then they would receive one $billion in contracted work for about $128million. Not a bad deal for the buyer.
With oil collapsing and the Saudis wanting to keep market share I am afraid that oil is heading lower. I believe that there will be great buying opportunities in this sector but obviously the question is when? The bottom in oil is usually made quickly and violently so do DD and try to buy proven reserve oil at $5-$10 a barrel and you will make big money. Hero got beat up so badly yesterday that even though the market and oil are getting killed it bounced up.......so far.
Hero proves that nothing works always. Insiders bought at $6.58 which was a disaster for the insider and anyone that followed his lead. Goes to show that the stock market has a lot of risk even for the insiders.
of the $74-$76 range. If that fails we will test the four year bottom of $65 and if that fails we may have to test the $35 area. I doubt the $35 area will be seen because the whole world was falling apart when that bottom was made. Any of the others could be. We all know that Oil will rebound but of course the question is when? I know many here have spent their investable funds but the oil play will be a good one. When??? I'm not sure-yet. I will buy a new position in an P&E company or another driller(if new construction contracts are cancelled). Unfortunately my new position will be a much smaller one since Hero has taken its toll.