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$5.04 -0.14 (-2.70%)
11/6/2009 4:00 PM

Hercules Offshore, Inc. (HERO)

CAPS Rating:
****

The Company provides shallow water drilling and liftboat services to the oil and natural gas exploration and production industry in the U.S. Gulf of Mexico and internationally.

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What the Community Thinks

Total Members

1477 Outperforms
57 Underperforms
 

All-Stars

488 Outperforms
12 Underperforms
 

Wall Street

7 Outperforms
4 Underperforms
 

Members bullish on HERO are also bullish on:

Members bearish on HERO are also bearish on:

Ticker Tags

Distressed (1712), Energy (457), Small Cap (1579), It's a Boy! (23), Value (1895), Hard Asset (1024), Exploration (46), Energy Equipment and Services (97)
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Hercules Offshore, Inc. At A Glance

Current Price: $5.04
Last Trade Time: 11/6/2009 4:00 PM
Open: $5.08
Previous Close: $5.18
Daily Range: $4.98 - $5.28
52-Week Range: $1.07 - $7.28
Volume: 2,154,603
Market Cap: $577.83M
P/E Ratio: 4.52
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Stock Trends

HERO VS S&P 500 (SPY)

News & Discussion Boards

Top Bull Pitch

Recs

22

Hercules Offshore, Inc. (HERO)

Avatar JakilaTheHun (99.95) Submitted: 5/20/09 7:05 AM

I initiated this pick at $1.78. I went long on this in real life at $3.80. HERO is now trading around $4.15.

HERO's net tangible assets are worth $10.33 per share as of March 31, 2009. Debt-to-value is moderately high at 64.1%, but that's not actually that high compared to other companies oper...More

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Top Bear Pitch

Recs

1

Hercules Offshore, Inc. (HERO)

Avatar DirtySmuggler (35.35) Submitted: 10/07/07 3:48 PM

Underperform for about a quarter. It's just not as compelling of a buy as a company like RIG who has a HUGE catalyst ready to launch share prices up. Once they get past the next two reports, growth rates should become more apparent and the company faces pretty good upside.

Outperform in...More

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CAPS Members

picks per page. CHANGE

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Recs

0

 (HERO)

Avatar LasseLion (32.12) Submitted: 10/31/09 3:54 PM : Outperform Start Price: $5.15 HERO Score: -4.72

The Oil Service Companies will shine in the shadow of Peak Oil.

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Recs

4

 (HERO)

Avatar Teacherman1 (88.38) Submitted: 10/10/09 1:18 PM : Outperform Start Price: $1.74 HERO Score: 157.75

HERO is certainly my hero. Since I got in back in April, at $1.74, I am up almost 200% actual and about 166% vs the S&P.

Since I am in this stock in real life, with real money, that 200% works fine for me.

There has been a lot of speculation and disagreement about the eminent demise of this company. On Oct. 7th there was an MF article telling about what a winner it was going to be. Then on Oct. 9th, there was another one telling about why you should avoid it like the plague.

It seems the primary reason some have written this off is that they are a shallow water service company with too much debt; and there is some validity to those points.

I would however like to share some contrary thoughts on this subject. The oil and gas business, like others over the past year or so has been hit hard,; and the servicing companies even harder. I do believe, however, it will come back as there is recovery in the economy. I disagree that shallow water drilling is a thing of the past. There has been some recent activity in this area; and as a native of the Gulf Coast, I just do not buy into the argument that all of the oil and natural gas in these waters (as well as shallow waters globally) has been discovered. I have been involved in the O & G industry in the past. It costs a lot less to recover and does not have to be a "home run" to pay off.

Now, as to their debt, they have taken recent steps to address that. They did a stock offering on Sept. 30 which should net them about 83M; and sold Senior Secured Notes of $300M on Oct. 8th. Their stated purpose for these offering was to pay down debt. They had too much for these times and that was a prudent and necessary thing to do.

The notes do not mature until Oct. of 2017, and will require semi-annual payments of about $15M beginning in April of 2010.

They showed a big loss in 2008, but his was due to writing off about 1.3B (mostly in goodwill). I like it when a company cleans up their balance sheet by getting rid of goodwill and impaired assets.

This was their first loss since going public in 2005.

They have had relatively small losses in the first half of 2009 (about $17M), but that is to be expected in the current economic situation.

As of June 2009, they had total assets of about $2.5B and total debt of about $1.5B. Their tangible net worth (no goodwill), was just under 1B.

Their current assets were $440M , to $255M in current liabilities.

They had a positive operating cash flow, and a positive leveraged free cash flow, which I think is very goog in these times.

While they will not likely get back to their historic highs of about $40 a share, there is still a lot of upside to this stock. Their current PE is only 4.5.

The latest analyst recommendation in September is to SELL, but I always take those recommendations with a grain of salt; whether good or bad.

Since I am in at $1.74 (took a chance when things looked even bleaker), I am very comfortable in holding this for the longer term and benefiting even more than my current (paper) profits. I am also comfortable in saying that in my opinion, this is still a good buy for the patient, longer term investor, who does not panic at the latest rumor or fluctuations and gyrations in the market.

As always, this is JMO and worth exactly what I am charging for it.

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Recs

0

 (HERO)

Avatar seattleretro (29.68) Submitted: 10/09/09 3:07 PM : Outperform Start Price: $4.99 HERO Score: 2.57

decent management and a change of administration in 2012

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Recs

0

 (HERO)

Avatar MATTALANKANE (68.99) Submitted: 9/30/09 4:36 AM : Outperform Start Price: $5.05 HERO Score: -0.92

THIS IS NO BRAINER......LIKE TAKING CANDY FROM A BABY

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Recs

0

 (HERO)

Avatar dpid (< 20) Submitted: 9/20/09 9:04 PM : Outperform Start Price: $6.60 HERO Score: -24.81

SCHWAB rec

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Wall Street

Results 1 - 11 of 11  

picks per page. CHANGE Expand All Pitches

Top
Pick		Member NameMember RatingStart
Date		CallTime FrameStart
Price		Stock
Gain		S&P
Gain		ScorePitch
TrackJesupLamont < 20 09/23/09 Underperform NS $6.50-22.46%-0.18%+22.28
TrackBMOCapital 86.09 09/03/09 Underperform NS $4.36+15.60%+7.87%-7.72
TrackBarclaysCap 86.02 05/08/09 Underperform NS $4.51+11.75%+17.62%+5.87
TrackSnow 94.97 02/20/09 Outperform 1Y $2.10+140.00%+42.13%+97.87 Toggle the visibility of 60-Second Pitch and replies
TrackJimCramer < 20 11/11/08 Underperform 3W $5.57-9.52%+22.43%+31.95
TrackHowardWeil 33.32 08/22/08 Outperform NS $22.75-77.85%-14.63%-63.21
TrackJefferies 75.83 05/05/08 Outperform NS $28.90-82.56%-21.19%-61.37
TrackDreman 89.07 09/30/07 Outperform NS $26.11-80.70%-26.44%-54.26 Toggle the visibility of 60-Second Pitch and replies
TrackCalyonSec < 20 09/13/07 Outperform NS $26.76-81.17%-24.05%-57.12
TrackLehmanBros 76.60 08/27/07 Outperform NS $27.11-81.41%-23.73%-57.68
TrackMatrix 89.45 03/30/07 Outperform NS $26.70-81.12%-20.38%-60.75

Results 1 - 11 of 11  

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