Monday, October 14, 2013

Seeking Alpha: There's Still Room For Parker Drilling To Outperform

Parker Drilling (PKD) has been a public company for quite some time, but the company hasn't had what you'd call a consistent record of performance. Energy services, and drilling particular, has always been a volatile, cyclical business, but I would estimate that the company has only earned its cost of capital once or twice over the last decade. Maybe it's not altogether surprising then that the stock has stayed pretty much stuck in a band between $4 and $6 over the past four years.

These shares dipped slightly below that range in April of this year, only to exceed it slightly in July and here again more recently, but I believe these shares may yet be undervalued. Demand for drilling barges in the Gulf of Mexico has picked up, and so too has demand for rental tools (particularly for deepwater activities). At the same time, I think the company's progress with its international operations still has not been fully appreciated by the Street. Although Parker Drilling remains a "show me" story, I wouldn't be surprised if these shares trade between $8 and $9 before too much longer.

Please read the full article here:
There's Still Room For Parker Drilling To Outperform

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