NYSE:HK
$21.75
(2/9 2:36PM)
+0.4%
| Open | $21.91 |
Mkt Cap | $6.5 Billion |
| High | $22.29 |
52Wk High | $28.49 |
| Low | $21.5 |
52Wk Low | $14.89 |
| Volume | 5.4 Million |
Avg Vol 10D | 5.4 Million |
Ockham's Rating/Recommendation Summary
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HK Revenue
As a value investing shop, we are interested in seeing how HK's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 6.33x and the low end of the range at 2.20x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for HK of 6.58x is significantly above its historical average. This places HK at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 54% merely to return HK to its historical average.
HK Cash Earnings
When reviewing a company and their prospects for success, it is necessary to analyze their ability to generate positive Cash Earnings. This is a vital component to our analysis, because as a long term investment research firm, there are few factors more closely tied to the valuation of a company as Cash Earnings. In the case of HK, it appears that either the current estimate for Cash Earnings is negative or HK is not likely to generate positive Cash Earnings based upon their prior performance in the last several quarters.
Remember that Cash Earnings is not the only way to value a company's potential, but in our analysis it is the most important. Thus, for our analysis HK receives a negative score from a Cash perspective. At Ockham, we are fond of saying "Cash is King," and in this case the company is not generating any. If a company is not able to generate a profit then there is no reason to invest in them. Unless of course you believe in the story, and hope it will eventually lead to a profitable enterprise.
HK Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. While we do like to see companies with healthy and growing dividends, it is not appropriate for all companies, especially those focused on growth. In this regard, we regard HK as neutral because we do not have historical data for this company's dividends. We will being incorporating this into our analysis as soon as that data is available.
Short Sellers and HK Discussed on Countdown to the Closing Bell
No matter if you are long Petrohawk Energy Corporation, it pays to understand the reason that some are shorting it. Petrohawk Energy Corporation and shorts were a topic covered on Countdown to the Closing Bell.
At the current price, value investors will want to look elsewhere for a buying opportunity as this stock has heated up and is currently Overvalued. We noticed recently that in comparison to all other stocks we analyze in the news; HK has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… PETRO HAWK. H shgs -- hk those are the most pure plays they performed beautifully. The I e organization is etf that has a lot of these guys also has xto in it. …”
HK Back in the News on Squawk On The Street
It's been at least a month since we noticed any major news coverage of HK, so the story in Squawk On The Street may get the ball rolling.
They think it's headed to $45 a share. Stocks being assumed in buy rated coverage. Cabot oil and gas and PETRO HAWK all headed higher today. Citi is likes pinnacle right now now, moving higher 1% on the the other cabot, the material company raised from buy to hold at key corp, 6%. Cog oil and gas.
“… Cabot oil and gas and PETRO HAWK all headed higher today. Citi is likes pinnacle right now now, moving higher 1% on the the other cabot, the material company raised from buy to h... …”
Petrohawk Energy Corporation (HK) Discussed on CNBC's Mad Money
Petrohawk Energy Corporation is in the news. Find out how this impacts HK trading on Ockham Research.
Locking in a price? I say that because last week we had a fabulous e-mail from jonathan in atlanta asking about this issue. So we did a run flu imetrics, this really cool service, allows to you sift through s.E.C. Filings at lightning speed p we found sand ridge, PETROHAWK, anadarko and newfield are the most hedged for 2010. So if you're bullish on natural gas you may not want to be in these. Imetrics.Com tells us the comstock, whiting, eog, and patchee are the four least they can benefit from a big rally in nat gas. So from now on we're going to use that prism to analyze the natural gas stocks because the less hedged you are the more benefit you get from natural gas. Eqt comes right down the middle. 41% hedge for 2010. We want to know what that hedging strategy says about the future of natural gas pricing. More importantly we want to know how bryce this future is for this low kovlt nat gas producer that has been a dine mitt stock, having appreciated 345% over the last ten years while the s&p 500 has declined. And you wonder why I profile these companies so often? Let's talk to morrie gerber, the cref eqt. >> it's good to be back. >> it's terrific to have you.
“… d ridge, PETROHAWK, anadarko and newfield are the most hedged for 2010. So if you're bullish on natural gas you may not want to be in these. Imetrics.Com tells us the comstock, whiting, eog, and patchee are the four least they can benefit from a big rally in nat gas. So from now on we're going to use that prism to analyze the natural gas stocks because the less hedged you are the more benefit you get from natural gas. Eqt comes right down the middle. 41% hedge for 2010. We want to know what that hedging strategy says about the future of natural gas pricing. More importantly we want to know how bryce this future is for this low kovlt nat gas producer that has been a dine mitt stock, having appreciated 345% over the last ten years while the s&p 500 has declined. And you wonder why I profile these companies so often? Let's talk to morrie gerber, the cref eqt. >> it's good to be back. >> it's terrific to have you. …”
Petrohawk Energy Corporation (HK) Discussed on CNBC's Closing Bell
Petrohawk Energy Corporation is in the news. Find out how this impacts HK trading on Ockham Research.
Pressure for cleaner environment and energy independence, that -- and I think the u.S. Economy will pick up as well come maybe late third, fourth quarter. I think you're going to zero bust gas prices and the shell players, the low cost producers are going to be the winners in that environment, both PETRO HAWK and range. >> 25 million new shares. You're raiseing capital. What are you going to do with the money? >> well, it was a mainly being used for acquisitions in our key areas and a little bit of a safety factor given the current softness in the natural gas >> you think you could could have raced this capital four or five months ago or is the rebound in the markets helping >> clearly the rebound in the market has helped a tremendous four or five months ago, I wouldn't have tried.
“… to be the winners in that environment, both PETRO HAWK and range. >> 25 million new shares. You're raiseing capital. What are you going to do with the money? >> well, it was a mainly being used for acquisitions in our key areas and a little bit of a safety factor given the current softness in the natural gas >> you think you could could have raced this capital four or five months ago or is the rebound in the markets helping >> clearly the rebound in the market has helped a tremendous four or five months ago, I wouldn't have tried. …”
Petrohawk Energy Corporation (HK) Discussed on CNBC's Closing Bell
Petrohawk Energy Corporation is in the news. Find out how this impacts HK trading on Ockham Research.
Further than expected in its latest forecast. Joining us now is floyd wilson, chairman and ceo of PETRO HAWK be energy. Guys, good to see you. Mr. Wilson, opec says demand is going to be even lower next year than people thought, which is already pretty low. Is that your assessment of the energy demand in the world, as >> you know, michelle, PETRO HAWK is so deeply involved in the natural gas business about, 95% natural gas, probably don't have as good a read on that as you might think being in the energy business. >> what do you see in terms of natural gas demand then? >> natural gas demand has gone through a turnaround the past demand is down due to recession and supplies are up because of the success in these great she'll plates in the united so we're expecting, i'm expecting prices to be soft for a bit longer. There have been enough rig cuts,
“… w. Is that your assessment of the energy demand in the world, as >> you know, michelle, PETRO HAWK is so deeply involved in the natural gas business about, 95% natural gas, probably don't have as good a read on that as you might think being in the energy business. >> what do you see in terms of natural gas demand then? >> natural gas demand has gone through a turnaround the past demand is down due to recession and supplies are up because of the success in these great she'll plates in the united so we're expecting, i'm expecting prices to be soft for a bit longer. There have been enough rig cuts, …”
Petrohawk Energy Corporation (HK) Discussed on CNBC's Power Lunch
Petrohawk Energy Corporation is in the news. Find out how this impacts HK trading on Ockham Research.
It's only down half a percent, I believe, today. And if indeed that holds, then I think you do see crude oil trade and you get a changes to get into some of these other stocks like PETROHAWK and some of the others that I would like to buy at lower levels. >> yeah, and also deductible -- look at the oil service names which have pulled back a lot. I bought some of the xcs, cash-rich companies need to start to begin to think about
“… >> yeah, and also deductible -- look at the oil service names which have pulled back a lot. I bought some of the xcs, cash-rich companies need to start to begin to think about …”