financial engineering and buffett reaping the benefits. He bad mouths P/E firms and hedge funds but he plays along. this guy has BS written all over him.
why should hp trade at such a high premium 1.25 bv to like .6 to .7 times book value for the others? does it deserve a prem? yes but not this much imo.
this mgt needs to be thrown out. financial engineering was the strategy. pile on debts, buyback stock and chop head count was it
earnings are going to collapse. yes good company but should it trade so much higher than competitors? probably drop to 48 once earnings hit.
nothing is going on ron it is all about playing catchup on the downside. all its competitors (nbr, pds, pten)trade at big discount to book values while hp trades above its 48 book value.
so this is probably where the stock should be imo. Precision patterson and nabors all trading at big discount to their book values. so even at Book value HP would be trading at a premium to competition! sell sell sell imo
this stock will catch up with the competition to at least bv about 48. most competitors are substantially under bv so this has some hot air under it cuz of the dividend. rig count is going to plunge and so are rates
surprised this one is holding at such high valuations vs its competitors. would bet this changes as the rig count crashes. 50 here we come