Replies to post #17 on Superior Energy Services Inc. (fka SPNR)

[Timothy Smith]

Recent positives for $SPN

Williams Financial Group just initiated the shares as "Buy" with a price target of $30 a share this week.

The CEO has purchased some $300K in new shares over the last six months.

After falling for months, consensus earnings estimates for both FY2012 and FY2013 have stabilized and remained the same as they were a month ago, $2.83 a share in FY2012 and $2.71 in FY2013.

"Superior Energy Services provides specialized oilfield services and equipment to serve the production and drilling-related needs of oil and gas companies. It operates through three segments: Subsea and Well Enhancement, Drilling Products and Services, and Marine." (Business description from Yahoo Finance)

[Timothy Smith]

Superior Energy Services (SPN) has a market capitalization of around $4B.

4 reasons SPN is undervalued at $27 a share:

Credit Suisse initiated the shares as "Outperform" to begin the month. This follows RBC Capital's decision to upgrade the shares to move the shares to "Outperform" from "Sector Perform" in January.

The company grew revenues by over 100% in FY2012 on the back of a $3.5B acquisition. Analysts expect mid-digit sales increases in FY2013. The stock has a five year projected PEG of under 1 (.54).

The stock is cheap at around 5x operating cash flow and just 99% of book value.

Like Whiting, the company has also tripled its operating cash flow over the past three years.