Continue reading Oceaneering International: Profit from Oil's Rise to $100

Oceaneering International: Profit from Oil's Rise to $100 originally appeared on BloggingStocks on Thu, 21 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Hornbeck Offshore: Maintaining position in a 'totally misbehaving' stock

Hornbeck Offshore: Maintaining position in a 'totally misbehaving' stock originally appeared on BloggingStocks on Wed, 02 Dec 2009 16:15:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII)

Closing Bell: Sudden euphoria, take 18 (C, DNDN, LOW, ORCL, SII) originally appeared on BloggingStocks on Tue, 22 Sep 2009 16:00:00 EST. Please see our terms for use of feeds.

Continue reading It will pay to own Schlumberger

It will pay to own Schlumberger originally appeared on BloggingStocks on Wed, 06 May 2009 10:30:00 EST. Please see our terms for use of feeds.

Early this morning, oil firm Schlumberger (NYSE: SLB) reported earnings of 78 cents per share -- which was considerably lower than last year's same-quarter results of $1.09 per share. While the results were worse than a year ago, SLB managed to top the consensus estimate by three cents. Quarterly revenue totaled $6.0 billion, which was off from last year's revenue of $6.29 billion.

SLB, which is the world's largest oilfield services company, attributed the lower results to a slump in energy demand, which forced customers to reduce activity and search for price reductions. The company also noted that the rate of decline in its oilfield services division dropped considerably compared to the fourth quarter, thanks mainly to a sharp drop in the firm's North American natural gas rig count. SLB stated, "Our visibility on 2009 has not materially changed from the end of the fourth quarter."

Continue reading Schlumberger's first-quarter earnings drop but still top expectations

Schlumberger's first-quarter earnings drop but still top expectations originally appeared on BloggingStocks on Fri, 24 Apr 2009 08:00:00 EST. Please see our terms for use of feeds.

"Many experts believe that oil prices are at unsustainably low prices now, and they expect a sharp rise in the commodity price as supply and demand come back into line again," says turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "If oil does begin to rise again, the oilfield service stocks could rebound sharply." Here, he takes a look at large cap plays on a rebound within the oilfield services sector.

"We all know that oil prices have fallen dramatically from their highs in the summer of 2008. But different types of oil-related stocks have reacted quite differently to the price change in the underlying commodity.

"For example, while oil itself has dropped nearly 70% from its 12-month high, the stock of the largest integrated oil company, Exxon-Mobil (NYSE: XOM), is down only 26%, less than the stock market as a whole.

Continue reading Oilfield services: Four favorite turnarounds

Oilfield services: Four favorite turnarounds originally appeared on BloggingStocks on Tue, 24 Mar 2009 13:30:00 EST. Please see our terms for use of feeds.

"Valuations for even the best-placed, most well-established companies in the energy space are sitting at levels unseen since the late 1990s when oil prices collapsed to around $10 per barrel," says energy sector specialist Elliott Gue.

Here, the editor of The Energy Strategist looks at Schlumberger (NYSE: SLB), noting, "The firm active in just about every imaginable market and I regard the company as a top-notch indicator of ongoing trends in the oil services business."

"It's clear that there's been some slowing in demand, and the credit crunch has had an impact on the fundamental business. But the reaction in the stock market over the past three months goes well beyond even a worst-case scenario.

"Bottom line: Many energy-related stocks are pricing in a severe recession and recent action in the broader markets is reminiscent of sentiment characteristically seen near market lows. The short-term outlook for the energy patch is much better now than it was during the bear market in 1998 and 2002.

"I regard Schlumberger as a top-notch indicator of ongoing trends in the oil services business and, more broadly, international oil and gas drilling activity. I always pay close attention to what Schlumberger has to say in its conference calls and, as usual, this quarter's call was instructive.

Continue reading Schlumberger (SLB): Drilling for value

Schlumberger (SLB): Drilling for value originally appeared on BloggingStocks on Fri, 21 Nov 2008 10:35:00 EST. Please see our terms for use of feeds.

So, why does Goldman prefer RIG to HAL? The former is more strongly levered to oil than the latter -- and, going forward, the analysts expect strong fundamentals and heightened oil prices to support "oilier" stocks. In a note to clients, Goldman said, "... we continue to expect a healthy oil-services spending environment through 2010, supported by low reinvestment rates and secular trends to more complex, high-margin drilling services."

Despite the bullish "buy" ratings on both securities, Goldman tempered its optimism by trimming its price targets on the duo. HAL's forecast was slashed from $63 to $58, while RIG's was trimmed from $189 to $178. The new price targets represent a 44.5% premium from HAL's closing price yesterday, and a 47% increase from RIG's Thursday settlement.

Continue reading Transocean bumps Halliburton from Goldman's conviction buy list

Transocean bumps Halliburton from Goldman's conviction buy list originally appeared on BloggingStocks on Fri, 05 Sep 2008 13:49:00 EST. Please see our terms for use of feeds.

"Our 'Forecasts Focus List' contains only two energy stocks, both of which are in the oil services sector: Oceaneering International (NYSE: OII) and Transocean (NYSE: RIG)," says blue chip advisor Richard Moroney.

The editor of Dow Theory Forecasts says, "While stocks in the equipment and services group tend to move with oil prices in the near term, their profits depend more on exploration spending than on commodity prices."

"Concerns about slowing demand for crude oil and re?ned products both in the U.S. and overseas have many investors worried. But investors in the equipment and services group should not panic.

"Most producers continue to spend aggressively. And U.S. crude-oil inventories remain well below the average for this time of year, with fewer than 20 days of supply in storage.

"Demand for offshore-drilling services remains strong, giving Transocean excellent growth potential. Consensus estimates project per-share profits will rise 69% in 2008 and 15% in 2009. Transocean, the world's largest offshore drilling contractor, operates in every major drilling region.

"A combination of tight global rig supplies and the ongoing discovery of new offshore reserves have driven rig lease rates higher and kept Transocean's fleet busy. The company's largest, most expensive rigs are 95% sold out for 2009, and the backlog is growing.

Continue reading Drilling for gains in offshore drilling services

Drilling for gains in offshore drilling services originally appeared on BloggingStocks on Wed, 20 Aug 2008 14:28:00 EST. Please see our terms for use of feeds.

Expro, which is a UK oil services company, is a hot property. The company recently agreed to a £1.6 billion buyout from a group of private equity firms, which include Candover Partners, Goldman Sachs Capital Partners (NYSE: GS) and Alpinvest Partners N.V.

Now, Halliburton (NYSE: HAL) is making a play for Expro. The offer is £1.71 billion (which comes to about $3.38 billion).

Of course, high crude prices are driving the deal. What's more, Halliburton needs to expand its international footprint as the US business languishes. Another benefit: Expro has some key technologies that allow for deep drilling capabilities.

But, in light of the quick changes in the oil landscape - as well as the possibility of other suitors coming to the table - we are likely to see more bids for Expro.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Halliburton jumps on the M&A bandwagon originally appeared on BloggingStocks on Fri, 23 May 2008 12:06:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Credit Suisse initiated coverage of the U.S. media sector with a Market Weight rating, shares of The Walt Disney Company (NYSE: DIS) with an Outperform rating and shares of Time Warner Inc (NYSE: TWX) and Viacom Inc (NYSE: VIA.B) with Neutral ratings.
  
• Bernstein initiated coverage of the oil services sector with a Positive Bias rating. The firm initiated Weatherford International Ltd (NYSE: WFT) with an Outperform rating and $84 target and Halliburton Company (NYSE: HAL), Baker Hughes Incorporated (NYSE: BHI) and Schlumberger Limited (NYSE: SLB) with Market Perform ratings and a $44 target, $103 target and $96 target, respectively.
  
• MercadoLibre Inc (NASDAQ: MELI) was initiated by American Technology with a Buy rating and $45 target, as the firm believes the e-commerce growth opportunity in Latin America is still in its infancy. Shares were also started at Pacific Crest with an Outperform rating and $37 target, as the firm believes the company should benefit from strong secular growth and company-specific drivers. MercadoLibre was also initiated at JP Morgan with an Overweight rating and at Merrill Lynch with a Buy rating and $35 target.
  
• Friedman Billings expects Horsehead Holding Corp's (NASDAQ: ZINC) EBITDA to increase even in a declining commodity environment and believes the company is well positioned to gain market share. Shares were started with an Outperform rating and $27 target also added to the firm's Top Pick List.

• Citigroup started shares of Companhia Vale do Rio Doce (NYSE: RIO) with a Buy rating and shares of StealthGas Inc (NASDAQ: GASS) with a Hold rating and $20 target.
  
• Roth Capital started shares of Internap Network Services Corporation (NASDAQ: INAP) with a Buy rating and $19 target.
  
• Raymond James initiated Atmel Corporation (NASDAQ: ATML) with an Outperform rating and Argo Group Internaional Holdings Ltd (NASDAQ: AGII) with a Strong Buy rating.

Analyst initiations: U.S. media, oil services, MELI and ZINC originally appeared on BloggingStocks on Wed, 19 Sep 2007 11:10:00 EST. Please see our terms for use of feeds.