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Steven Cohen Adds to Superior Energy Stakes, 649.41%
Posted by: Dianne Tordillo (IP Logged)
Date: October 4, 2012 01:23PM
Founder of hedge fund SAC Capital Advisors, Steven Cohen, purchases about 6.8 million more shares of Superior Energy Services Inc. (SPN), reported on 10/02/2012 according to GuruFocus Real Time Picks.
At an average price of $20.36 per share, Cohen’s total SPN share amount is 7,911,426, boosting his company ownership to 5%.
Superior Energy Services is a company that focuses on serving the drilling and production-related needs of oil and gas companies, providing specialized oilfield and well decommissioning services and equipment, according to the company’s website.
Currently trading at $19.52 per share, average stock prices for SPN have declined by more than $20 since August of 2011, ranking one star on GuruFocus’ Business Predictability Rank, and 5 out of 10 in both Financial Strength and Profitability & Growth ratios. SPN maintains a P/E ratio of 12.6, a P/S ratio of 1.6 and a market cap of $3.22 billion.
Superior Energy predicts its earnings per diluted share to be in the range of $0.52 and $0.55, according to a media release announcing Superior’s third quarter earnings expectations. Due to Hurricane Isaac, much of Superior’s operations in the Gulf of Mexico led to a more rapid decline in its onshore U.S. rig count than originally expected, as well as a delay in delivery of an Arctic Containment System for a 2013 drilling campaign in Alaska.
“Directionally, we were correct in our assumptions about lower activity and utilization in the U.S. land market for the second half of 2012,” Superior CEO, David Dunlap, said in the release. “However, the pace of reduction was greater than what we anticipated as our customers have taken action to contain their 2012 spending to budgeted levels. Despite the slowdown and reduced revenue, margins in most of our product and service lines are performing at or near planned levels…”
Prior to his recent SPN purchase, Cohen sold more than 1 million SPN shares in the first quarter when its trade price increased, then made back those shares in the second quarter by purchasing about a little over 1 million SPN shares, after the price decreased by almost $6.
By the end of the second quarter, Cohen’s no. 2 sold stock industry among the 1,842 stocks in his portfolio made up of oil and gas producers.
Guru Discussed: Steven Cohen: Current Portfolio, Stock Picks
Stocks Discussed: SPN,