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Should go to 10 I think. Company is profitable. Rates for rigs is increasing. Rigs are booked up. This one tends to move up and down with oil prices even though it has little to do with finances. GW is an oil SERVICES company, changes in oil price does not change the cost of the rig. GL
Then we should be around 10pps based on PE ratio for 2007!!!! hehe.
Basically it means that the price to earnings ratio (PE) is X times the estimated earnings per share for next year. Someone correct me if I'm wrong. A multiple of 7 is very low and should be higher. The market usually corrects in it's own time. The market is always right, just not right now. LOL
I have never understood the " trading at X times next years earnings". Can you help me out by explaining how you figure that out?
No doubt! But it really is undervalued, trading at something like 7 times next years earnings. And the company is profitable. I've been in and out of this one with good results every time and I think I'll get in again. GL
That Cramer guy has been bashing GW for a year, now all of a sudden..........must have bought it.
Well Cramer is bullish on Grey Wolf again!?! I guess it's not going sour after all. Go figure.
Taking a shot here, bought more DURING CC, I think it will be positive. ROLL THE DICE BABY! What the heck I'm bored.
Pre conference call!
Looks like volume is extremely high today (~3m) and pps close to 7. Perhaps a run as we near earnings report day??
I think so, or close to it. Definitely worth buying in or adding at this level. I added more in the last few days.
all imho.
Are you thinking a run into 9?
Ok folks, this one is starting to move. It may pull back a little but I think it will climb into the earnings report which should be an upside surprise. Then another run higher. IMHO.
I'm adding more tomorrow. Sorry Mr. Cramer I do not see this going to $5.00
GLTA
First post here. Am preparing to buy GW--but because of tax loss selling and the chart pattern, will likely hold off another couple of weeks or so. Like the options potential also--the January and March 7/12 call options.
Have read all the posts. Will become more active here as time goes on. Waitedg
I tend to agree with you on all points, including the new huge oil reserves found in the gulf of mexico and the hurricane disaster and all the sunk rigs. GW is also heavily into natural gas, and that demand will climb as well.
Its funny.......Everytime I do the opposite of what Jim Cramer recommends I do very well.
I read that a few days ago. I think they will report better than expected earnings, so I will hold. If it goes to 5 I'll buy more. Oil will rocket upwards again if opec cuts production or another negative development in the middle east occurs. I think both events are likely. This is about 20% of my portfolio, which is well diversified so I still feel ok about it. I'll be watching closely of course. Yeah, it may not reach $10 but my cost basis is a little over $6 anyway. I think people also get this one confused with an oil company, but it's an oil services company and rates for their rigs are rising. Now is the time to get into oil and services as I think it's found the bottom. But then, I might be mistaken. LOL
GLTY
I see today that Cramers "The Street" devalued GW iterating that the business is goin to go SOUR, (whatever that means) and that the stock will drop to 5 ps. Your thoughts?
I know that "Stocks under Ten" has been hot for teacher lately. I am beyond frustrated looking at this stock year after year.,.....guess I will hang in there. Thanks for your input.
Shares are way undervalued. Trading at just six times next years earnings. Solid financials. Long term growth rate of 33% according to Capital IQ. Domestic drilling will increase as we constantly try to wean ourselves off of foriegn oil. This company is VERY profitable. Eventually I believe the market will correct the pps as it usually does, in it's own time. Right now oil and gas is down, but never stays there. I've been adding to this position lately. I sure hope I'm right.LOL
IMHO
I am curious why you think pps will be $10? I currently own GW and have been waiting a long time to see results that the analysts claim will happen.
im in the same boat got alot of Gw and cant wait till monday to see what happens with our sljb. Ive owened GW for 5 years now and keep adding .
Ok, if anyone is reading here. Ya gotta forgive me, I have a buttload of SLJB and can't get a word in edgewise overthere, not to mention I can't sleep, my brain keeps multiplying mumbers. But I DO have a bunch of GW and believe in it.
GLTME/YOU
Whats it to ya/me?
You'r just pumpin' this for a profit!
Nobody posting here, but I'll just talk to myself. Self, I think I/you made a good pick on this one. Very profitable company, down a bit right now, but day rates are high and moving higher on big demand. Also, only trading a six times next years earnings which they will probably beat anyway!! Should see $10.00 a share.
NEWS:
Grey Wolf, Inc. Celebrates 25 Years of Listing on The American Stock Exchange
CEO Thomas Richards to Ring the Opening Bell
EVENT: Grey Wolf, Inc. CEO, Thomas Richards, will ring the opening bell at the American Stock Exchange on Thursday, September 7th in honor of 25 years of being listed on the Amex.
COMPANY: Grey Wolf, Inc. has been a leader in the oil drilling business, providing contract land drilling services to oil and gas companies in the United States. With 114 premium drilling rigs, Grey Wolf is a market leader in the regions that hold the nation's most significant onshore natural gas reserves.
WHEN: Thursday, September 7, 2006
Opening Bell 9:30 a.m.
WHERE: American Stock Exchange
86 Trinity Place, NY, NY
MEDIA: Media interested in attending the Amex Opening Bell or arranging an interview with Thomas Richards, CEO, must contact Bari Trontz at 212-306-8964 or bari.trontz@amex.com.
BROADCAST: A feed of the Amex Opening Bell is available via fiber line at Ascent Media/Waterfront loop # 6208 beginning at 9:05 a.m.
American Stock Exchange
CONTACT: Bari Trontz of Amex, +1-212-306-8964, bari.trontz@amex.com
Bullish buys in a bear market
Commentary: Break away from the bear with three long-term picks
E-mail | Print | | Disable live quotes By Jack Rothstein, Wealthcast
Last Update: 11:20 AM ET Jun 21, 2006
FAIRFAX, Va. (Wealthcast) -- In spite of the likely scenario of a bear grip hugging and squeezing the life out of an old bull that apparently gave up the ghost in May, I will examine three stocks that I consider good chances to profit from on the long side of the line.
The current market is bouncing after selling off since May 11, when both the Standard & Poor's 500 Index (SPX : S&P 500 Index
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SPX1,255.94, +15.82, +1.3%) and the Dow Jones Industrial Average (INDU : Dow Jones Industrial Average
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Last: 11,111.16+136.32+1.24%
12:59pm 06/21/2006
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INDU11,111.16, +136.32, +1.2%) traded at long term peaks.
Expect the S&P 500 to struggle as it challenges its 200-day moving average at 1261 and will likely peter out as it knocks on the door of its 150-day line at 1280.
Here are today's picks. Pay close attention to entry levels and remember to place your stops.
Grey Wolf (GW)
I am involved in Grey Wolf (GW : grey wolf inc com
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Last: 7.18+0.18+2.57%
12:39pm 06/21/2006
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GW7.18, +0.18, +2.6%) at lower price points having picked it up the other day. It is in the midst of a bounce and I am in it for a trade up to the 7.75 zone. The current market is more generous to traders than those investing for the long term. It pays to be nimble and willing to make moves in the current market. I picked up GW in a grossly oversold condition. It is now just plainly oversold and will likely challenge key inflection points in the vicinity of 7.75. That is a good place to sell the stock. A good price to pick GW up is in the 6.75 to 7 zone. It is good for a trade. Place the stop at 6.59.
Grey Wolf to buy back $100M of its stock
Friday May 26, 3:40 pm ET
Grey Wolf Inc. said that its board of directors has authorized the company to repurchase from time to time up to $100 million of common stock in open market or in privately negotiated block-trade transactions.
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The number of shares to be purchased and the timing of purchases will be based on several factors, including the price of the common stock, general market conditions, available cash and alternate investment opportunities. The stock repurchase program is subject to termination prior to completion.
"We are committed to bringing value to our shareholders," says Tom Richards, chairman, president and CEO of Grey Wolf. "Our strong cash position enables us to consider repurchasing common stock as one of several strategic investment options while continuing to finance future growth."
When companies buy back stock as a way of returning profits to shareholders, it's a signal that their boards of directors are confident in the financial strength of their operations.
Grey Wolf (AMEX: GW - News), headquartered in Houston, provides contract oil and gas land drilling services in the natural gas producing regions in the United States.
Published May 26, 2006 by the Houston Business Journal
Oil Stocks Fall With Crude Price
Monday May 15, 12:55 pm ET
Crude Oil Price Falls on Projections of Slower Growth, Oil Stocks Dragged Down
NEW YORK (AP) -- The slumping price of oil pulled down the stocks of oil companies from giant producers to smaller contract drillers Monday.
A barrel of light crude for June delivery dropped $2.59 to $69.45 in midday trading on the New York Mercantile Exchange, as traders continued to react to lowered demand projections.
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The International Energy Agency on Friday said the aggressive run-up in oil prices is likely to ease, as U.S. demand weakens and countries in the former Soviet Union boost exports. The agency cut its global crude oil demand growth forecast for this year by 15 percent.
Jacques Rousseau, an analyst with Friedman, Billings, Ramsey & Co., said he's now forecasting a barrel of oil to be $59 this year, although that may be too low.
If oil prices do reverse and head down, it could spark "a sudden correction" that could push the stocks of oil producers down between 5 percent and 10 percent, said David Adams, an analyst with Jefferies & Co. Stocks have traded almost in perfect correlation with crude oil prices the past five months, Adams said.
While oil stocks fell, many were declining from close to their 52-week highs. Many are still trading comfortably above their 52-week lows.
Among the big oil producers, Exxon Mobil Corp. shares fell 50 cents to $61.74 on the New York Stock Exchange. It's traded between $52.78 and $65.96 the past year.
BP PLC stock was down $1.74, or 2.3 percent, to $72.90. Its 52-week range is $57.95 to $76.85.
ConocoPhillips was down $1.66, or 2.6 percent, to $63.53. Its 52-week range is $47.55 to $72.50
Chevron Corp. was down 72 cents to $60.66. Its 52-week range is $49.81 to $65.98.
Of contract drillers, Patterson-UTI Energy Inc. shares were down 75 cents, or 2.4 percent, to $31.05. Its 52-week range is $23.45 to $38.49.
Competitor Grey Wolf Inc. shares dropped 29 cents, or 3.6 percent, to $7.81. Its 52-week range is $5.52 to $8.93.
Grey Wolf, Inc. Announces Record Net Income for the Quarter Ended March 31, 2006
Monday May 1, 6:09 pm ET
HOUSTON, May 1 /PRNewswire-FirstCall/ -- Grey Wolf, Inc. (Amex: GW - News; "Grey Wolf" or the "Company") reported net income of $54.2 million, or $0.24 per share on a diluted basis, for the three months ended March 31, 2006 compared with net income of $23.0 million, or $0.10 per share on a diluted basis, for the first quarter of 2005. Revenues for the first quarter of 2006 were $222.9 million compared with revenues for the first quarter of 2005 of $150.0 million. The first quarter 2006 results included an after tax gain of $5.9 million ($0.03 per diluted share) for the previously announced sale in January of five rigs formerly held for refurbishment for $15.3 million.
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The Company reported record total earnings before interest expense, taxes, depreciation and amortization ("EBITDA") of $106.3 million in the first quarter of 2006 (including the $9.4 million pre-tax gain from the sale of five rigs previously held for refurbishment), up from $81.2 million the fourth quarter of 2005 and $53.6 million for the first quarter of 2005. On a per- rig-day basis, EBITDA was $10,866 for the first quarter of 2006, $8,212 for the fourth quarter of 2005 and $6,071 for the first quarter of 2005. Turnkey EBITDA per rig day in the first quarter was $19,294 and daywork EBITDA per rig day totaled $9,820. Daywork and turnkey EBITDA as well as EBITDA per rig day were the highest in the Company's history. Daywork EBITDA per day increased by $1,594 in the first quarter of 2006, exclusive of gain in sale of assets, over the fourth quarter of last year.
"On the heels of the best year in the Company's history, Grey Wolf produced record quarterly results for revenue, net income, and EBITDA, spurred by both daywork and turnkey operations," commented Tom Richards, Chairman, President and Chief Executive Officer. "Our net income increased 42% from the fourth quarter of 2005 and our dayrates rose an average of $1,500 per day across rigs and regions during the first quarter of 2006. We continue to build Grey Wolf through strategic investment in additional rig capacity buttressed by full payout term contracts and extended term contracts on a majority of our fleet."
Grey Wolf averaged 109 rigs working in the first quarter of 2006. This compares with an average of 108 rigs working in the fourth quarter of 2005 and 98 rigs working during the first quarter a year ago. Year-to-date, the Company has refurbished and reactivated two rigs under term contracts. Leading edge rates are currently $18,500 to $26,000 per day without fuel or top drives.
The Company expects to recognize an after-tax gain in the second quarter of 2006 of approximately $2.5 million from insurance proceeds following an extensive fire that destroyed a 2,000 horsepower rig in March. The rig will be replaced at a cost of approximately $11 million by using spare components and new components to construct a 2,000 horsepower diesel electric rig expected to be placed into service by year end.
After the loss of the rig in March, Grey Wolf's rig fleet includes 111 marketed rigs and three rigs available for refurbishment. The Company intends to reactivate all three of its remaining rigs available for refurbishment in 2006, significantly upgrading each at an average capital expenditure of approximately $11.8 million. These three rigs have been committed under term contracts with one expected to begin operations in the second quarter and the other two in the third quarter. It is expected in the aggregate that the term contracts will recover, after projected operating expense, all of the incremental capital expended in their redeployment. Grey Wolf's marketed rig fleet will total 119 rigs following the reactivation of the three rigs available for refurbishment, the replacement of the 2,000 horsepower rig, and the delivery of four new rigs that are on order as previously announced.
"These four new 1,500 horsepower rigs are expected to be delivered by the end of 2006 and are contracted with four different customers under three-year term contracts," said Mr. Richards. "These four new rigs, coupled with the three refurbishments and the replacement of the 2,000 horsepower rig, will add eight additional units earning revenue by the end of the year."
Grey Wolf continues to enter into long-term contracts and, as of May 1, 2006, has 73 rigs working under such contracts. The Company has approximately 18,700 days or an average of 68 rigs contracted for the remaining three quarters of 2006, 11,900 days or an average of 33 rigs committed under term contracts in 2007, and 3,600 days or an average of 10 rigs committed in 2008. These contracts range in length from one to three years but end at various times over this period providing an opportunity to reprice at then-current market rates. The average increase in the contracted revenue per day on long-term contracts renewed during the past few months is approximately $5,800.
Capital expenditures were $28.0 million during the first quarter. Based upon rig refurbishment plans, replacement of the 2,000 horsepower rig, and the purchase of four new rigs, capital expenditures for 2006 are currently projected to be $200 million to $210 million. This projection is subject to the ultimate number of rigs purchased or returned to service during 2006.
Beginning in May 2006, the Company is providing a wage increase (approximately $540 per operating day) to rig-based personnel that will be contractually passed through to our customers in the form of higher dayrates. This increase reflects our commitment to retaining experienced crews that provide superior service to our customers and operate our rigs in a safe and efficient manner.
Based on anticipated levels of activity and dayrates during the second quarter of 2006, the Company expects to average 109 rigs working and to generate EBITDA of approximately $107.8 million for the period. Depreciation expense of approximately $17.6 million and interest expense of approximately $3.5 million is anticipated. Net income per share is expected to be approximately $0.24 on a diluted basis, using a tax rate of approximately 37% based upon the expected net income of $54.5 million for the quarter. These projected results include an approximate after-tax gain of $2.5 million related to insurance proceeds expected to be received to recover the loss of the rig damaged by fire.
Grey Wolf has scheduled a conference call May 2, 2006 at 9:00 a.m. CT to discuss first quarter 2006 results. The call will be web cast live on the Internet through the Investor Relations page on the Company's website at: http://www.gwdrilling.com
To participate by telephone, call (888) 793-1722 domestically or (212) 676-5240 internationally ten to fifteen minutes prior to the starting time. The reservation number is 21286296. A replay of the conference call will be available by telephone from 11:00 a.m. CT on May 2, 2006 until 11:00 a.m. CT on May 4, 2006. The telephone number for the replay of the call is (800) 633-8284 domestically or (402) 977-9140 internationally and the access code is 21286296. The call will be available for replay through the Grey Wolf website for approximately two weeks after the conclusion of the call.
Earnings Conference Call Invitation May 2, 2006 - 9:00 a.m. CT
Monday April 3, 12:17 pm ET
HOUSTON, April 3 /PRNewswire-FirstCall/ -- Grey Wolf, Inc. (Amex: GW - News) invites you to join Thomas P. Richards, Chairman, President and Chief Executive Officer and David W. Wehlmann, Executive Vice President and Chief Financial Officer, Tuesday, May 2, 2006 at 9:00 a.m. CT for a discussion of operating results for the first quarter 2006. Grey Wolf will release earnings after the market closes on May 1, 2006.
Following the presentation there will be a question and answer period.
Date: May 2, 2006
Time: 9:00 a.m. CT
Dial-In Number:
Domestic: 888-793-1722
International: 212-676-5240
Reservation Number: 21286296
Please call ten minutes ahead of time to ensure proper connection. The conference call will be recorded and available for replay at 11:00 a.m. CT on May 2, 2006 until 11:00 a.m. CT on May 4, 2006. To hear the recording, please call (800) 633-8284 domestically or (402) 977-9140 internationally and enter access code 21286296.
The call will also be webcast live on the Internet through our website at:
www.gwdrilling.com
The call will be available for replay through our website for approximately two weeks after the conclusion of the call. A copy of our earnings release will also be available on our website.
If you have any questions, please call David W. Wehlmann with Grey Wolf at (713) 435-6100.
GW is finally pulling up. Is it because of the price of oil? I starting to do real well here. Question for the board though should I sell at 8 or will this go to 10.
Almost out the woods on this one. Come on 8
Grey Wolf Rig Damaged in Fire
Friday March 10, 5:25 pm ET
Grey Wolf Says Rig Suffers "Extensive" Damage in Fire
HOUSTON (AP) -- Onshore oil and gas drilling contractor Grey Wolf Inc. on Friday said a fire erupted on one of its drilling rigs in Louisiana, causing "extensive damage," but no one was injured in the incident.
The fire broke out early Friday morning on Rig 84, a 2,000 horsepower diesel electric rig under a daywork contract, the company said. The rig sustained "extensive" damage but is covered by insurance, according to the company, which said it is currently evaluating the rig's condition.
Shares of Grey Wolf fell 5 cents to close at $6.59 on the American Stock Exchange.
unixguy
I use the 5 charts as follows:
(1)BUY when Daily Price dips below Blue Line and then moves
above blue.
(2)During 1 above, the price on the weekly chart must stay
above the blue line.
Translation:
Look to buy on Daily chart weakness, while Weekly and Monthly charts stay strong.
It is that easy.
PS: The WAVX Monthly has been down(Below the blue line)
for 29 MONTHS. And the funny thing is that the current Monthly blue line is only 1.05. But who knows if that will be crossed in Mar?
Thanks, I'm not a good chart reader but, it seems that more downside is coming ?? Thanks Again I appreciate your help.
GW Monthly,Weekly,Daily, 30 Minute, 3 Minutes
Watch the Monthly Blue Line = 6.33393= RSI(14)=50
.
I am getting my ass kicked here, why after record profits this is going down day after day?
For the TA followers:
After watching the level 2 the past few days, I saw large resistance at 7.15 and we finally broke that after lunch today. I would like to see a close above that and look for that to be support with next real resistance at 7.50. Let's hope this is the confirmation of the next upwards trend.
Tell me when you hop in
Tell me when you hop in
I am watching and good luck.
My wife just bought in yesterday, think her cost base is low 7's I'm in at 7.25, I still believe they have great fundamentals. Just wish more of the market saw that.
Record profits????, is it just the price of natural gas hitting them, or a warm winter (As I look at 6"+ of snow outside )
Regards Unix
I too have been in and out and would like to add but just doesnt look ready.
I'm hurting in this now, but I still like the fundamentals. Just wish it could pop to 10 Thanks for replying. Regards Unix
unix,
I was impatient with this one back last year and quit playing it. I like the chart setup on the weekly for a move up so I got in. I have been accumulating since 7.50 down to 6.80.
Possible explanations for the weakness:
Long trend up....needed a pullback
Recent exposure on "Mad Money" cramer bullish brought out some hedge money to scare the retail investor out of some shares
natural gas prices have gone down (not sure of the exact figures) and I believe that is core drilling bus.
Recent downgrade by analyst
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