Annaly Capital Management Inc. (NYSE: NLY) Cut to Market Perform at FBR.
ArcelorMittal (NYSE: MT) Cut to Sell at S&P Capital IQ.
BP PLC (NYSE: BP) Raised Estimates by UBS; Cut to Hold at Soc-Gen.
CBOE Holdings, Inc. (NASDAQ: CBOE) Cut to Underperform at KBW.
Demand Media Inc. (NYSE: DMD) Cut to Underweight at Morgan Stanley.
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) Cut to Neutral at Credit Suisse.
ING Group, N.V. (NYSE: ING) Cut to Neutral at Goldman Sachs.
Morgan Stanley (NYSE: MS) Cut to Hold at Collins Stewart.
National Oilwell Varco Inc. (NYSE: NOV) raised target to $96 at Argus.
OpenTable Inc. (NASDAQ: OPEN) Cut to Perform at Oppenheimer; Cut to Neutral at Credit Suisse; Raised to Overweight at Piper Jaffray.
Sohu.com Inc. (NASDAQ: SOHU) lowered targets by Credit Suisse and Nomura.
UBS AG (NYSE: UBS) Cut to Sell at Deutsche Bank.
Vishay Intertechnology, Inc. (NYSE: VSH) Raised to Overweight at JPMorgan.
Yum! Brands Inc. (NYSE: YUM) Raised to Neutral at Goldman Sachs.

Credit Suisse makes a change to its favorite biotech list.

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JON C. OGG

In its November report, OPEC cut its estimate of world economic growth in 2012 from 3.7% to 3.6%, though the cartel did leave its oil demand forecast unchanged at 1.2 million barrels/day, up from 900,000 barrels/day of increased demand in 2011. OPEC expects demand for its crude to rise by 1 million barrels/day next year, and non-OPEC demand to rise by 200,000 barrels/day. The services companies need stronger demand growth if they are themselves to grow.

The six companies we’ve looked at for this report are Schlumberger Ltd. (NYSE: SLB), Halliburton Co. (NYSE: HAL), BakerHughes Inc. (NYSE: BHI), Transocean Ltd. (NYSE: RIG), National Oilwell Varco, Inc. (NYSE: NOV), and Weatherford International, Inc. (NYSE: WFT). All have market caps greater than $10 billion, even though share prices have fallen by a minimum of -1% since the end of July.

All data from Yahoo! Finance, and current share prices were gathered just before noon today.

Schlumberger Ltd. (NYSE: SLB) has a median target price of $94.00 from 27 brokers. Shares are trading today at $70.79, for a potential upside of $23.21, or 32.8%. The company pays a dividend yield of 1.3 and has a forward P/E of 14.46. Schlumberger’s target price has dropped from $105 to $94 in just four weeks, and its share price today is barely 1% higher than it was then. The company missed expectations on its last earnings report and the weaker demand and economic forecast going forward continues to put pressure on the stock. The company’s target price is in no imminent danger of being reached. In fact, the target will likely be revised downward again before the company reports fourth quarter earnings. EPS estimates for the fourth quarter have fallen by $0.10 in the past 60 days.

Halliburton Co. (NYSE: HAL) has a median target price of $53.50 from 28 brokers. Shares are trading today at $35.93, for an implied gain of $17.57, or 48.9%. The company pays a dividend yield of 0.9% and its forward P/E is 8.84. Halliburton’s target price has fallen from $63.00 to $53.50 in the past four weeks, even though the company managed to beat third quarter EPS and revenue estimates. The company has put a lot of eggs in the shale gas and oil drilling basket, and that has so far paid off everywhere but in the company’s share price. Fourth quarter EPS estimates have decreased by -$0.04 in the past 60 days and while the implied upside is very attractive, Halliburton certainly won’t get near it.

Baker Hughes Inc. (NYSE: BHI) has a median target price of $76.00 from 25 brokers. Shares are trading today at $54.24, for an implied upside of $21.76, or 40.1%. The company pays a dividend yield of 1% and its forward P/E is 9.82. Like every other stock in this group, Baker Hughes’ target price has dropped in the past month, from $91.00 to its current level of $76.00. The company missed third quarter EPS estimates, but fourth quarter estimates have risen by $0.01 in the past 60 days. The company’s share price today is -4% lower than it was on October 19th, when we last looked at these stocks. Again, the implied gain is not on the table for the current quarter, and likely not for at least part of next year.

Transocean Ltd. (NYSE: RIG) has a median target price of $67.50 from 34 brokers. Shares are trading today at $48.18, for a potential upside of $19.32, or 40.1%. The company pays a dividend yield of 6.4% and its forward P/E is 11.59. Tranocean stock is still weighed down by the company’s exposure to claims related to the Macondo well explosion that killed 11 workers and spilled 5 million barrels of crude into the Gulf of Mexico. Although the company’s target price has dropped from $71.50, its upside potential remains near the same level it was a month ago. Until that spread narrows, the only way Transocean gets nearer its target price is if the target is lowered again.

National Oilwell Varco, Inc. (NYSE: NOV) has a median target price of $88.00 from 24 brokers. Shares are trading today at $67.32, for an implied upside of $20.68, or 30.7%. The company pays a dividend yield of 0.7% and its forward P/E is 11.51. The company raised its quarterly dividend from $0.11 to $0.12 yesterday, boosting its yield slightly. If any of these services companies has a chance to hit its price target, National is the likeliest mainly because its upside potential is the smallest.

Weatherford International, Inc. (NYSE: WFT) has a median price target of $22.50 from 26 brokers. Shares are trading today at $14.95, for an implied gain of $7.55, or 50.5%. The company pays no dividend and its forward P/E is 9.88. Weatherford’s share price today is about -1.3% below its level of a month ago, and its it target price is $1.50 lower. That says about all there is to say about Weatherford’s ability to deliver those implied gains.

Of all these companies, only National Oilwell Varco has much of a chance to deliver on these promises of expected gains. Its price target fell from $95 to $88, putting the target within reach, but not so close that it will be automatic. Even rising crude oil prices aren’t likely to spur a lot more exploration and drilling in the near term, and that’s what National and the rest of this group needs.

Paul Ausick

The SPDR S&P 500 (NYSE: SPY) rose by 10.9%. but the gain from trough to peak was far more.  We have offered some color on each and shown how much implied upside is there to the Thomson Reuters consensus analyst price target as well.  These gainers are listed lowest to highest on a percentage basis for the month.

Denbury Resources Inc. (NYSE: DNR) rose by 36.5% as shares rose from $11.50 to $15.70. Analysts have a consensus price target of $24.40. The company acquires and develops oil and gas properties in the Gulf Coast states.  The company announced a $500 million share buyback during October, but it also announced that its President & COO has left the company.

Valero Energy Corporation (NYSE: VLO) saw a 38.4% gain as the stock rose from $17.78 at the end of September to $24.60 at the end of October.  Analysts have a consensus price target of $31.50.  Valero was the subject of buyout speculation and its shares have not really sold off after word came that one rumored acquirer was not looking o acquire it.

National Oilwell Varco Inc. (NYSE: NOV) saw a 39.3% rise from $51.22 at the end of September to $71.33 at October’s end.  Analysts have a consensus price target of $89.75. If the offshore oil market is going to be opened back up, having a an offshore rig manufacturing business is going to be robust again.

Joy Global, Inc. (NASDAQ: JOYG) saw a gain of 39.8% from $62.38 on September 30 up to $87.20 at the end of October.  Analysts have a consensus price target of $102.00.

Juniper Networks, Inc. NYSE: JNPR) rose by 41.8% in October $24.47 versus $17.26.  The turnaround in networking is being seen in the stock. Analysts have a consensus price target of $25.03. Juniper has risen off of lows just as many other networking equipment players have seen.

Goodyear Tire & Rubber Co. (NYSE: GT) rolled on and on for a 42.3% gain as shares went from $10.09 at the end of September to $14.36 at the end of October.  Analysts have a consensus price target of $18.69.  Goodyear is back to profits and shares are actually still very cheap at about 7-times a blended forward P/E for 2011 and 2012 estimates.

El Paso Corp. (NYSE: EP) saw a 43.1% gain for the month but we would not that this is due mostly to the acquisition of the company.

F5 Networks, Inc. (NASDAQ: FFIV) had a very large run as the network equipment player bounced hard off its lows.  A move from $71.05 at the end of September to $103.95 was up 46.3%. Analysts have a consensus price target of $106.67.

Nabors Industries Ltd. (NYSE: NBR) was one of the top performers for October as the shares rose from $12.26 to $18.33, generating a 49.5% gain. The $100 million payout for the CEO exit is under criticism, but the oil and gas driller did beat earnings and has reorganized its management structure.  Analysts have a consensus price target of $27.33.

Harman International Industries Inc. (NYSE: HAR) saw a rise of 51.5% as the stock rose from $28.53 on a dividend-adjusted basis up to $43.16. Analysts have a consensus price target of $47.25.  In late October came word of higher 2012 guidance as well as a buyback of up to $200 million in its stock over the next year.

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JON C. OGG

Schlumberger Ltd. (NYSE: SLB) has a median target price of $105.00 from 26 brokers. Shortly before noon today, shares are trading today at $70.00, for an implied gain of $35.00, or 50%. Schlumberger’s forward P/E is 13.15 and the company pays a dividend yield of 1.5%. The stock’s 52-week trading range is $54.79-$95.64, and at today’s price that’s about 28% above its 52-week low and 27% below the 52-week high. Schlumberger is the largest of the services companies and it has had four straight quarters of revenue growth and three of four quarters of profit growth. The company reports earnings on Friday, and is expected to post EPS of $1.01 on $10.25 billion in revenue. That’s revenue growth of 50% and EPS growth of 30%. The constraint on these numbers going forward is a weakening demand for energy as the global economy continues to struggle. With its upside potential and recent track record, the implied gain for Schlumberger is within reach.

Halliburton Co. (NYSE: HAL) has a median target price of $65.00 from 27 brokers. Shares are trading today at $34.69, for an implied gain of $30.31, or 87%. Halliburton’s forward P/E is 7.85 and the company pays a dividend yield of 1%. The stock’s 52-week trading range is $27.21-$57.77, and at today’s price that’s about 27% above its 52-week low and 40% below the 52-week high. Halliburton reported earnings on Monday, beating EPS estimates of $0.92 by $0.02 and posting record revenue of $6.54 billion. The company is the largest seller of hydraulic fracturing (fracking) services in the US, and with interest in the method growing internationally, the company is well positioned to continue growing both revenues and profits. Halliburton’s shares have fallen slightly since its last report, likely due to overall economic conditions and the scant beat of EPS expectations.

Baker Hughes Inc. (NYSE: BHI) has a median target price of $91.00 from 24 brokers. Shares are trading today at $56.58, for an implied gain of $34.42, or 61%. Halliburton’s forward P/E is 9.75 and the company pays a dividend yield of 1.1%. The stock’s 52-week trading range is $41.91-$81.00, and at today’s price that’s about 35% above its 52-week low and 30% below the 52-week high. Baker Hughes last month increased the amount of borrowing available to it under its revolving credit facility to $2.5 billion. The interest rate on the facility varies from 0.625% to 1.125%, and S&P rates the company’s unsecured debt at ‘A’. In its most recent quarter, Baker Hughes improved EPS by more than double compared with the same period a year ago. Expectations for the third quarter, which ended in September, are for another doubling of EPS.

Transocean Ltd. (NYSE: RIG) has a median target price of $72.50 from 34 brokers. Shares are trading today at $50.99, for an implied gain of $20.51, or 40%.Transocean’s forward P/E is 8.95 and the company pays a dividend yield of 6.3%. The stock’s 52-week trading range is $41.88-$85.98, and at today’s price that’s about 22% above its 52-week low and 41% below the 52-week high. Transocean is most often thought of as an offshore drilling company, but it also provides many services similar to the Halliburtons and Schlumbergers of the world. The big difference is that it does not offer those services onshore. The other big difference is that Transocean has not yet come to an agreement with BP plc (NYSE: BP) over Transocean’s culpability for the Macondo well explosion. Until that is settled, the company remains under a cloud of uncertainty. The company’s share price is down more than -20% in the past year, the most of any company in this group.

National Oilwell Varco Inc. (NYSE: NOV) has a median target price of $95.00 from 23 brokers. Shares are trading today at $66.09, for an implied gain of $28.91, or 44%.National’s forward P/E is 11.59 and the company pays a dividend yield of 0.7%. The stock’s 52-week trading range is $47.41-$86.71, and at today’s price that’s about 39% above its 52-week low and 24% below the 52-week high. National has just completed a $777 million acquisition of a pipe maker in order to be able to offer additional field services to its customers. The company also received a ‘buy’ rating from analyst firm Sterne Agee yesterday and earlier received an outlook rating of ‘positive’ from S&P. At the end of the last quarter, the company’s long-term debt totaled $500 million, and other acquisitions are not out of the question. The recent acquisition of Complete Production Services, Inc. (NYSE: CPX) by Superior Energy Services, Inc. (NYSE: SPN) could be an indicator that smaller services companies are in play.

Weatherford International Inc. (NYSE: WFT) has a median target price of $24.50 from 24 brokers. Shares are trading today at $15.15, for an implied gain of $9.35, or 62%.Weatherford’s forward P/E is 9.43 and the company does not pay a dividend. The stock’s 52-week trading range is $10.85-$26.25, and at today’s price that’s about 40% above its 52-week low and 42% below the 52-week high. Weatherford, like Transocean, has seen its share price fall in the past 52-weeks. Weatherford, like National, may be shopping for acquisitions, but the company’s $6.2 billion in long-term debt and modest free cash flow could be problematic.

Paul Ausick

The violations, called Incidents of Non-Compliance, against BP were expected. Those against Transocean and Halliburton were not. Each company received four citations in what is believed to be the first time that a sub-contractor has been cited for violations related to a particular incident. Cameron International Corp. (NYSE: CAM), maker of the failed blow-out preventer at the Macondo well, was not cited.

In its announcement of the violations, BSEE noted that “BP, Transocean and Halliburton’s conduct in connection with the operations at the Macondo well violated a number of federal offshore safety regulations under BOEMRE’s jurisdiction.” The BSEE aknowledged that this is the first time that contractors have been held responsible for violating regulatory rules, but cited the “severity of the incident” as the reason to hold all parties responsible.

The oil field services industry, drillers, and other contracted services providers are literally quaking in their shoes over the implications of the BSEE’s announcement. The BSEE charges, if not overturned in the inevitable litigation that will follow the decision, will provoke a major change in the relationship of contractors like Transocean and Halliburton to operators like BP. The ruling will hit other services companies and drillers like Schlumberger Ltd. (NYSE: SLB), Baker Hughes Inc. (NYSE: BHI), and National Oilwell Varco, Inc. (NYSE: NOV) among many others.

The most immediate impact could come in insurance costs. Because contractors have never before been held accountable for operational incidents, their insurance coverage has likely been on the minimal side. That will change, and insurance rates will surely rise.

The second change will be in the rates that contractors charge operators. The added insurance coverage will bump up day rates and other charges, and an “uncertainty premium” will likely also have to be negotiated. That is, if the contractor is merely doing what the operator demands, but is still liable if an accident occurs, contracts will have to reflect the cost to the contractor of possibly casual compliance by the operator with existing regulations. Pricing that will be contentious to say the least.

Whatever happens, the cost to drill a well just went up, which will affect operators like BP and the other exploration and production companies as well. And because the operators are at the mercy of the crude oil markets, their higher costs may not be reflected in the price they can get for their oil. That will affect operator revenues and profits as well.

The logic behind BSEE’s decision is certainly arguable. On one hand, for the contractors to claim they were just following orders is a pretty weak defense. On the other hand, if it can be shown that following orders meant ignoring accepted safety standards, then the contractors should pay. They are under no obligation to violate safety regulations in service of the operators. Quite the contrary, in fact.

Stock prices among the services companies are down about twice as much as the overall market just before noon today. Transocean’s shares are off more than -3.5%, at $47.30, in a 52-week range of $43.15-$85.98. Halliburton’s shares are off about -2.2%, at $34.30, in a 52-week range of $27.21-$57.77. Shares of Baker Hughes are off more than -2.5%, at $52.05, in a 52-week range of $41.91-$81.00. Cameron is off about -1.5%, at $46.76, in a 52-week range of $38.77-$63.16.

Paul Ausick

China, in particular, stirs a lot of interest because its technically recoverable shale gas deposits are estimated to be about 1,275 trillion cubic feet (Tcf). That’s about 50% more than the estimated 862 Tcf of technically recoverable shale gas in the US. And US companies like Baker Hughes Inc. (NYSE: BHI), Halliburton Co. (NYSE: HAL), Schlumberger Ltd. (NYSE: SLB), and National Oilwell Varco, Inc. (NYSE: NOV) with both deep pockets and experience in shale gas exploration and production could get a crack at developing China’s vast shale gas deposits. US producers like Chesapeake Energy Corp. (NYSE: CHK) and Devon Energy Corp. (NYSE: DVN) are less likely partners, but such a deal is not impossible.

To date, no development of China’s shale gas resources has begun. The government is mulling plans both to offer subsidies to domestic E&P companies and to permit foreign company participation in extracting the gas. China’s approach to allowing its domestic companies to develop shale gas is something of a balance between granting licenses only to big players like Sinopec, formally China Petroleum & Chemical Corp. (NYSE: SNP), Cnooc Ltd. (NYSE: CEO), and China National Petroleum Co.’s Petrochina Ltd. (NYSE: PTR) and permitting smaller players to get into the hunt.

The government wants to avoid the development of hundreds of independent companies, as happened with the coal mining industry. The unlicensed coal mines were extraordinarily lethal to miners and riddled with corruption. The central government has fought hard to bring the miners under control in the last two years or so.

The Chinese have no experience or technology to develop their shale gas resources. Royal Dutch Shell plc (NYSE: RDS-A) has already been signed on by one of the two small Chinese companies to win a lease and the company has also formed a partnership with Petrochina.  Chevron Corp. (NYSE: CVX) and BP plc (NYSE: BP) are in discussions with Sinopec to form a partnership as well. Cnooc paid Chesapeake more than $2 billion for rights to participate in developing some Eagle Ford shale leases.

As China’s government continues to explore its options regarding shale gas development, one thing does seem clear. The government is leaning towards a less restrictive approach than it has taken with other hydrocarbon development. The country is also likely to adopt some sort of subsidy policy that would encourage shale gas development. That would be enough to really get foreign companies lined up to go to work.

Paul Ausick

As a group, these five have performed reasonably well over the past two quarters, but expectations are high as drilling in the US for shale gas has risen dramatically and more exploration is expected in other hot spots around the globe. Following first quarter earnings reports, the implied upsides for these companies ranged from 20%-26%, a far cry from where those levels are today.

What could have happened is that costs are higher than analysts expected or that the anticipated demand for more drilling hasn’t materialized as quickly or that technical and other difficulties have stalled new drilling. Whatever the cause, the slowdown could mean either that analysts were overly optimistic about these stocks or that the companies have seriously underperformed.

Oddly, perhaps, some target prices have risen while share prices have declined between -15% and -25% since mid-April. Maybe optimism does deserve some of the blame.

Schlumberger Ltd. (NYSE: SLB) is the largest of the oilfield services companies by far and it could be looking to get bigger as it company issued $2.5 billion in new debt. The company could be prepping a shopping spree in Brazil in order to meet government requirements for local sourcing in the development of the country’s huge offshore fields. Shares recently traded at $72.35 and its market cap is $102 billion. The stock’s 52-week trading range is $56.61-$95.22. The current value is trading at a price-to-book ratio of about 3.2 to 1. Its forward price earnings multiple is 13.82. The company currently pays a dividend yield of 1.33% to investors. Thomson Reuters has a consensus price target of $112.23, implying roughly 54% upside to the most recent price.

Activision Blizzard, Inc. (NASDAQ: ATVI) Started as Buy at Citigroup.
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Dillard’s Inc. (NYSE: DDS) called Value Stock of the Day at Zacks.
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Electronic Arts Inc. (NASDAQ: ERTS) Raised to Hold at Citigroup.
LDK Solar Co., Ltd. (NYSE: LDK) Cut to Sell at Argus.
Merge Healthcare (NASDAQ: MRGE) named as Bear of the Day at Zacks.
National Oilwell Varco (NYSE: NOV) Raised to Buy at Argus.
PulteGroup, Inc. (NYSE: PHM) maintained Buy but removed from Conviction Buy List at Goldman Sachs.
SodaStream International Ltd. (NASDAQ: SODA) Raised to Overweight at JPMorgan.
Teavana Holdings, Inc. (NYSE: TEA) started as Outperform at William Blair; Started as Neutral at BofA/ML.
United States Steel Corp. (NYSE: X) Raised to Buy at Citigroup.
Wesco Aircraft Holdings, Inc. C (NYSE: WAIR) Started as Buy at BofA/ML.

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JON C. OGG

The US Energy Information Administration estimates the China sits on top of about 1,275 trillion cubic feet of shale gas, which is about 50% more than the agency’s estimate for US deposits. The Chinese companies are looking for partners to develop the shale gas resources, and the expertise is in the foreign major integrated oil companies, the oil field services companies, and the drillers.

Royal Dutch Shell plc (NYSE: RDS-A) has signed a deal with a small Chinese gas company to explore, making it the first of the major integrated companies to get a toehold in exploration for shale gas in China. PetroChina has also formed a partnership with Shell and both Chevron Corp. (NYSE: CVX) and BP plc (NYSE: BP) are reportedly talking with Sinopec to create exploration joint ventures, and Norway’s Statoil ASA (NYSE: STO) is also seeking shale-gas assets in China.

The start of a boom in exploration for shale gas inevitably begins with the majors because that is their basic business. But it’s difficult to imagine that these companies will get any sort of participatory deal in the production of the gas. More likely is a fee-based deal where the companies are paid their expenses plus a defined amount for every cubic foot produced.

More likely to see bigger profits are the services companies like Halliburton Co. (NYSE: HAL) and Schlumberger Ltd. (NYSE: SLB) and the drillers like Baker Hughes Inc. (NYSE: BHI) and National Oilwell Varco, Inc. (NYSE: NOV) with extensive onshore experience. It is unlikely that US producers like Devon Energy Corp. (NYSE: DEV) or Chesapeake Energy Corp. (NYSE: CHK) will derive much benefit from the Chinese push into shale gas development, but if one of the producers does some creative thinking it’s possible.

The good news is likely to last a relatively short time however. Sinopec’s chairman has said that he expects unconventional gas like shale gas and coal-bed methane to drive growth for the company in the future. And getting Sinopec and the others to the point where they are self-sufficient could take up to four years.

And the Chinese certainly intend only to rent the technology they need now and to demand a transfer of technology from its partners so that the partners can be cut loose eventually. This pattern has been played out in solar PV development, wind turbine development, and virtually every sort of information technology development in China.

It’s still very early days in the Chinese shale gas industry. But the broad outline is well-established and well-rehearsed. There’s no reason to expect shale gas development to follow a different script.

Paul Ausick

Aker owns and operates two ultra-deepwater platforms in the North Sea and has two more on order. The new rigs will cost $900 million. Aker’s contract backlog totals just over $1 billion, and Transocean claims that the acquisition will be “immediately accretive” to earnings.

Some consolidation has already hit the drilling business, with National Oilwell Varco, Inc.’s (NYSE: NOV) recent acquisition of a privately held floating production storage and offloading firm. Other large drillers like Seadrill Ltd. (NYSE: SDRL) and Diamond Offshore Drilling, Inc. (NYSE: DO) may also be on the lookout for expansion. Possible targets include Precision Drilling Corp. (NYSE: PDS), with a market cap of around $4 billion is half the size of Diamond and about a third the size of Precision. Cal-Dive International Inc. (NYSE: DVR) with a market cap of about $292 billion could be an even more appealing target.

Other possible targets include Hercules Offshore, Inc. (NASDAQ: HERO) with a market cap of about $540 million, Vantage Drilling Co. (AMEX: VTG) with a market cap of about $420 million, Parker Drilling Co. (NYSE: PKD) with a market cap of about $700 million, and Pioneer Drilling Co. (NYSE: PDC) with a market cap of $720 million.

Precision Drilling’s trailing P/E ratio has fallen from around 58 in April to around 27 today. It’s forward P/E is down from 13.57 to 10.92 since we put the company on our list of energy value stocks.  The company operates onshore in North America and internationally, so it was largely unaffected by the moratorium in the Gulf of Mexico. Precision’s shares are up nearly 3.5% after about an hour of trading, to $14.69, in a 52-week range of $6.02-$18.18.

Cal Dive cannot put up a positive trailing P/E, and it’s forward P/E is just 7.74. It’s price/book ratio is 0.77. The company was hit by the Gulf drilling moratorium, and its business — putting real people deep underwater — is not filled with competitors. Unfortunately, many of the newest offshore fields are too deep for the company’s divers. Still, this could be a growing business offshore of Africa. Cal Dive’s shares are up more than 4.5%, to $3.13, in a 52-week range of $2.97-$8.19.

Hercules Offshore has even more troubles, with no trailing P/E and no positive forward P/E either. The price/book ratio is a mere 0.54. Revenue rose in the most recent quarter, and the company said dayrates were rising as demand increased in the US Gulf of Mexico. Hercules shares are up more than 7.5%, to $3.99, in a 52-week range of $2.05-$6.99.

Vantage Drilling’s numbers look about equal to Hercules’s. No positive P/E either trailing or forward, and a price/book ratio of 0.57. The company’s problem is long-term debt, which last quarter cost Vantage more than $25 million. Vantage shares are up more than 5.75%, to $1.47, in a 52-week range of $0.97-$2.26.

Parker Drilling’s trailing P/E is a nosebleed-level 143.84, and its forward P/E is 9.10. The stock’s price/book ration is 1.10. The company beat analysts’ expectation for earnings in the second quarter and is expected to earn $0.12/share in the current quarter, compared with just $0.01 last year. Parker’s drilling activities are either onshore or in shallow offshore waters. Parker shares are up more than 6%, to $6.11, in a 52-week range of $3.58-$7.45.

Pioneer Drilling is another onshore driller with a non-existent trailing P/E, but a forward P/E of 15.32. The price/book ratio is 1.74. Pioneer’s shares are up nearly 4%, to $13.34, in a 52-week range of $5.23-$18.00.

Paul Ausick