Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, offshore driller Seahawk Drilling (Nasdaq: HAWK ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Seahawk's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Houston (2008)|
|Market Cap||$112.2 million|
|Industry||Oil and gas drilling|
|Trailing-12-Month Revenue||$146.22 million|
CEO Randall Stilley (since September 2008)
CFO James Easter (since May 2010)
|Trailing-12-Month Return on Equity||(19.9%)|
|Revenue Growth (over past year)||(74.8%)|
|Cash/Debt||$47.9 million / $6.4 million|
Diamond Offshore (NYSE: DO )
Noble (NYSE: NE )
Nabors Industries (NYSE: NBR )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last month, WPThatcher offered a simple reason for why Seahawk should soar: "Selling for way less than its liquidation value."
Shares of Seahawk have been absolutely crushed for its Gulf of Mexico exposure, but many Fools believe it's now way too beaten to pass up. For example, Seahawk's price-to-book (0.3) is considerably lower than that of rivals Diamond Offshore (2.6), Noble (1.2), and Nabors (1.1), as well as the more obvious offshore plays such as BP (NYSE: BP ) (1.5) and Transocean (NYSE: RIG ) (1.0). While the Gulf of Mexico may not be completely open for business yet, CAPS member Retracement thinks most of Seahawk's risks are baked well into the price:
If someone offers me a deal to buy something for less than 25 cents on the dollar value wise on a company which has the second-largest fleet of jack-up rigs in the Gulf of Mexico and DD shows a big catalyst behind current depressed earnings and resulting valuation being a very rare event like the Macondo spill, it warrants a further look.
[Seahawk] will face a bumpy road ahead in its efforts to diversify the business and to try to insulate the company from regulatory uncertainties in the US Gulf, but I feel that my 'margin of safety' on this stock is about as good as it gets buying at current market prices.
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