Sunday, April 6, 2014

Seeking Alpha: RPC's Winter Of Discontent Has Passed

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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