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C&J Energy (CJES) agrees to acquire Casedhole Holdings, a multi-regional provider of...

C&J Energy (CJES) agrees to acquire Casedhole Holdings, a multi-regional provider of cased-hole wireline and other services for energy producers, for $272.5M in cash. CJES expects the addition to be immediately accretive to 2012 earnings and cash flow. CJES +1.1% AH.
Comments (8)
  • Company with 4.45 forward PE signs an immediately accretive deal. Who was selling it at the end of the day?
    6 Jun 2012, 04:57 PM Reply Like
  • I believe that is because of HAL announced lower margin due to rising guar gum prices
    6 Jun 2012, 05:58 PM Reply Like
  • Not me. I'm hoping to buy more at these prices.
    6 Jun 2012, 05:22 PM Reply Like
  • Sure looks like a great deal to me. Another win in my opinion.
    6 Jun 2012, 05:32 PM Reply Like
  • And CJES shows the good sense to pay in cash, given how cheap the stock is.
    6 Jun 2012, 05:36 PM Reply Like
  • What is wrong with this picture? Zach's rates CJES a "strong sell" just a week ago....
    C&J ENERGY SERVICES INC (NYSE)
    CJES 17.00 -0.46 (-2.63%) Vol. 942,784 16:02 ET
    ZACKS RANK: 5 - STRONG SELL

     

    Day Low - High 16.85 - 18.00
    52wk Low - High 12.65 - 32.94
    Avg Volume 1,109,355
    Industry OIL-FIELD SVCS
    Market Cap 907.10 M
    Div - Yield 0.00 - 0.00
    PE (forward) 4.64
    PEG Ratio N/A
    Current Year Est. 3.77
    EPS Last Year 3.59
    Zacks Rank
    Short-Term Rating 1-3 Months
    Zacks #1 Rank Strong Buys 5 - STRONG SELL
    6 Jun 2012, 06:11 PM Reply Like
  • Ken,

     

    Zacks "strong buys" and "strong sells" are based on whether analysts are raising their earnings estimates or lowering them. Zacks shows 6 analysts following CJES, and 5 have lowered their estimates in the last 30 days. That's what generates a sell signal at Zacks. As a value investor, I've never found this terribly useful, because these ratings are constantly changing. Today, CJES is at 4-Sell, moving up from 5-Strong Sell. A week or two from now it may be at 3-Neutral. A couple of months from now, if the stock has moved back to 20, it'll be at 1-Strong Buy or 2-Buy. Unless you're a very short term momentum trader, I've never found this to be terribly useful.

     

    While I'm not a fan of their short term buy and sell ratings, I do think Zacks has some very good analysts who write very good research reprorts (the 8-10 page reports, not the 1 page summaries).

     

    7 Jun 2012, 11:21 AM Reply Like
  • Today's action is far more dumbfounding than yesterday's. They say that Casehold runs a comparable margin to CJES. If they had $156M in revenues TTM and the same % trickles to the bottom line, then we would be looking at around $32M full year earnings TTM. That does not include the cost of servicing the new debt, but it also doesn't account for the growth over the past year nor the synergies that can come from this deal. We need stronger shareholders.
    7 Jun 2012, 04:03 PM Reply Like
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