Investopedia: Is Basic Energy Already Priced For The Worst Case?
The relief in second quarter energy services company performance needs to be kept in context. While Baker Hughes (NYSE:BHI) and Halliburton (NYSE:HAL) did indeed do better than feared, revenue was still down sequentially in North America, and operating margins were still soft. As a smaller player with less leverage, it's not surprising that Basic Energy Services (NYSE:BAS)
is also suffering. While conditions are indeed challenging, and likely
to remain so for 2012, today's valuation seems to put little faith in a
rebound and may be an appealing entry point for risk-seeking investors.