Timothy Smith Friday, 07/27/12 08:10:31 PM Re: boo boo post# 16 Post # of 63 Key highlights from earnings report: EPS came in at $1.37 per share, easily beating estimates of $1.16 a share. Revenue also rose 27 percent to $819.8 million, topping estimates of $780.4 million. The company said lower rig expenses and an increase in drilling activity boosted margins at its U.S. land operations (86% of total revenues) in the third quarter. Five reasons HP is a solid value at $46 a share: The stock is selling near the bottom of its five year valuation based on P/E, P/B, P/CF and P/S. Analysts expect over 20% revenue growth in FY2012 and near 10% growth in FY2013. The stock sports a five year projected PEG of under 1 (.71). The company doubled operating cash flow from FY2010 to FY2011, and the stock is selling for 5 times operating cash flow. HP has lost about a fifth of its value so far this year, compared with a less than 2 percent fall in the wider U.S. Dow Jones Oil equipment services index. The company has newer rigs and higher utilization (over 90%) than its peers. S&P has a "Buy" rating and a $69 a share price target on the stock. "My well came in big, so big, Bick and there's more down there and there's bigger wells. I'm rich, Bick. I'm a rich 'un. I'm a rich boy." - Jett Rink Don't believe anything I say. Do your own DD. Insert huge disclaimer here ____________.