Hi Sergio
C&J Energy Services, Inc. Commo (NYSE: CJES ) - Good value target price $25.00/share.
Petroleo Brasileiro S.A.- Petro (NYSE: PBR) - Closed out entire position today at $27.66.
Suncor Energy Inc. Common Stoc (NYSE: SU) - Accumulating shares below $30.00 w/ PBR proceeds.
Started a tracking position in C&J Energy Services, Inc. Commo (NYSE: CJES ). As you know they provide specialty equipment services for oil and natural gas exploration and production companies in the Texas, Louisiana, and Oklahoma regions. The company offers hydraulic fracturing, coiled tubing, and pressure pumping services. Its fleet includes 4 hydraulic fracturing fleets, 13 coiled tubing units, 16 double pump pressure pumps, and 9 single pump pressure pumps.
The average analysts earnings estimates for 2012 are $4.28 (according to Yahoo). BV is $6.52 with a PE of $9.09 and forward PE of $6.60. This stock appears to be in value territory. Calculating the Graham fair value No. you get $25.05. Therefore, it looks that at the current price of $19.70, this stock is selling 27% below it's GN fair value.
The market may be discounting their future earnings due to potential regulations on future fracking services. However, (to me) seems like a good value at the current price. Started a tracking position so I can watch and monitor the company.
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Closed out entire PBR position w/ unsettling feeling regarding their recent GOV positions on foreign investors. I plan to move the proceeds into SU at prices below $30.00. Will hold onto the cash in mean time.
EKS |
