Grey Wolf, Inc. (GW)

[captain america]

TSC Ratings' Upgrades, Downgrades



http://www.thestreet.com/_yahoo/newsanalysis/ratings/10412535.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA



Grey Wolf (GW - Cramer's Take - Stockpickr), which provides onshore contract drilling services to the oil and natural gas industry, has been upgraded to buy. The company's debt-to-equity ratio of 0.42, is below the industry average, implying successful management of debt. Its quick ratio of 4.06 demonstrates an ability to cover short-term cash needs. Net operating cash flow has increased 8.5% to $60.2 million from the year-ago quarter. Despite this increase, the Grey Wolf's cash flow growth rate still lags the industry average growth rate of 40%. At 42%, the company's gross profit margin is strong, but its net profit margin of 16% trails the industry average.

Share price has changed much from where it was a year ago. With a price-to-earnings ratio of 9.20, the stock is much cheaper than others in its sector. We believe the stock has good upside potential despite the fact that it has already risen in the past year. Grey Wolf had been rated hold since Nov. 13.