Wednesday, August 17, 2011

Digging in the Oil Patch

I just looked at ROSE, BEXP, CWEI, CVI, CPX, PTEN, RES, WLL, XLE and EOG.

I'm looking for strong sequential sales and earnings growth, with rising earnings estimates and a good valuation (P/E). In order of lowest forward P/E ...

CPX - (9) quarters of sequential sales growth [SSG] (the max given my data of past two years and estimates for two quarters out), (8) Qs of sequential earnings growth [SEG], double and triple digit sales and earnings growth, P/E falling from 14.4 to 10.4, eps estimates raised 30 days ago [30d] and 7 days ago [7d] (see Y!Fin estimates).

RES - 9QSSG, 9QSEG, double and triple-digit YoY sales and earnings growth, P/E falling from14.8 to 11.2, eps estimates revised upward 30d and 7d.

PTEN - 9QSSG, 8QSEG, triple and high double-digit YoY growth, P/E falling from 17.3 to 11.4, eps estimates up 30d and 7d.

ROSE - 6QSSG, 4QSEG, triple-digit YoY earnings growth, double-digit YoY sales growth, P/E falling from 56.4 to 24.4, eps estimates up 7d and current.

Here are my tables.

I just bought ROSE call options and stock. I can't say that ROSE is the best of the bunch. I already own CPX shares, and wouldn't mind owing RES and PTEN again.

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