1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dianne Tordillo
Dianne Tordillo
Articles (179)  | Author's Website |

Steven Cohen Adds to Superior Energy Stakes, 649.41%

October 04, 2012 | About:

Founder of hedge fund SAC Capital Advisors, Steven Cohen, purchases about 6.8 million more shares of Superior Energy Services Inc. (NYSE: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.

About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website

Rating: 3.9/5 (8 votes)


Please leave your comment:

GuruFocus has detected 4 Warning Signs with Superior Energy Services Inc $SPN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

Performances of the stocks mentioned by Dianne Tordillo

User Generated Screeners

canidPE >50th percentile of INDUSTR
brucexoct 17 user defined screen
AngryQuality Growth cheap
EnjoylifeDad 1
punjanoot2007a academy+joe
kltan12LOW PB/PS
carlentValue - Short
carlentValue - Long
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat