When I wrote on RPC (RES) about six months ago,
I thought the company was a well-run, quality small-cap energy services
name, but also a little pricey relative to some other options in the
services space. RPC's performance in the interim was quite good (up
about 20%), but the relative performances of Basic Energy (BAS) (up almost 120%) and several other service companies were even better, so I'm not exactly regretting the call.
Service
stocks have rebounded on the prospects of greater activity in 2014,
particularly in areas like pressure pumping and coiled tubing. Given
that RPC maintained pretty good margins even as contracts rolled off and
the company was forced to the tough spot market, I like this company's
prospects for making hay as increased activity leads to better prices.
The valuation isn't dirt-cheap right now, but I still think these shares
can head higher in 2014.
Read the full article here:
RPC's Winter Of Discontent Has Passed
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