Tag: investin

  • Civeo Corporation Could Be Good Turnaround Stock

    Civeo Corporation Could Be Good Turnaround Stock

    Civeo Corporation Could Be Good Turnaround Stock
    Civeo Corporation is a spin-off the Oil States International.
    It is a US accommodation service and multinational corporation. It is a spin-off of Oil States International and a public company listed on the NYSE

    by Gorica Gligorijevic

    Civeo Corporation is publicly traded on NYSE under the ticker name CVEO. According to the current price, it may never be so cheap. What we think is that this stock could easily be a great opportunity for investing. How does it come? Well, when the stock is cheap as this one is just a small sign of good news can send them flying.

    What we are talking about is the Civeo Corporation stock is turnaround stock. It had happened before, this particular stock made 115% profit in 1 month. This stock is ready to give some of the highest returns. How do we know that? Well, as we said just a small sign appeared recently. Investor Carl Icahn bought a 9.9% stake. That is a sign of a turnaround. The most interesting thing with this stock is that you will receive the 4.7% dividend while waiting for a turnaround.

    If you buy this stock now it is possible to double its value very soon. This stock can perform very well in 2020 as being an incredible buy. 

    Market Cap $162.547M
    Current price $0.9587

     

    Why invest in Civeo Corporation stock?

    Turnaround stock investing is a real source for investors. Hence, when you notice that some stock has a great probability of return within a year.

    Civeo ( CVEO) reported third-quarter revenues of $148.2 million, a net income of $4.5 million, and an operating cash flow of $23.6 million.

    Civeo Corporation delivered a third-quarter adjusted EBITDA of $36.2 million. It is up 62% compared to the previous year, and also, there is a free cash flow of $20.3 million Also, the reduced leverage ratio from 4.26x to 3.52x on September 30, this year.

    The company completed the acquisition of Action Industrial Catering which provides the company’s presence in the Integrated Services and Western Australian markets. Moreover, for the fourth quarter of 2019, Civeo awaits adjusted EBITDA $19.5 million to $23.5 million. For the full of this year, Civeo Corporation is expanding adjusted EBITDA guidance in the range of $98.0 million to $102.0 million. Civeo is reducing its 2019 capital expenditure guidance to a span of $33 million to $37 million.

    “We are encouraged by the Company’s achievements this quarter and we will continue to focus on operational execution, revenue diversification, free cash flow generation, deleveraging our balance sheet and winning new work as opportunities present themselves,” said Bradley J. Dodson, Civeo’s President, and Chief Executive Officer.

    Civeo Corporation company

    Civeo Corporation is the foremost provider of hospitality services.  But also has notable market positions in the oil operations in Canadian and the Australian. Civeo gives full solutions for accommodations of workers with long term and temporary lodging and gives food services, full housekeeping, power generation, communications systems, and logistics services. Currently, Civeo Corporation operates a total of 30 lodges in Canada, Australia, and the U.S., with approximately 31,000 rooms.

    Why invest in turnaround stocks?

    First of all, they may never be cheap again. By investing in turnaround stocks you may score double or triple-digit gains. How? The beaten-down stocks with real value will survive and provide a profit despite the overall market because they are driven by key developments in the company. And, the most important, turnaround stocks can run independently of the markets.

    The turnaround stocks may be hidden for the majority of investors. Hence, you must have a focus on several key criteria. The company must have a stable focus on businesses and be able to recognize and drop all profitless ventures. Such a company makes changes in management with successful turnarounds. 

    In the past, such a company completed a turnaround plan that gave clear, real direction to employees. Also very important to be noticed, the company must have several great shareholders who will support the turnaround attempt. The company has to be a trustworthy brand. All of these are guarantees that stock will have a great turnaround. It’s up to us to recognize the potential and buy on a bargain.

    When you notice all these indicators, it means you have got the opportunity to buy a great turnaround stock. It is time to put some of your money into stocks that give excellent value and powerful management. Yes, they are still beaten down but is it fair? This particular stock is ready for a big return.

     

  • Oil Stocks Rose After The Attack on Saudi Arabia’s Oil Facilities

    Oil Stocks Rose After The Attack on Saudi Arabia’s Oil Facilities

    2 min read

    Oil Stocks Rose After The Attack on Saudi Arabia’s Oil Facilities

    Oil stocks rose and all energy stocks rose but Wall Street fell on Monday after weekend attacks on Saudi Arabia’s oil facilities. Investors’ are concerned about this geopolitical risk and its influence on the global economy.

    The attack carried oil prices up more than 20%. But easing came after many countries stated they would use crisis reserves to ensure stable supplies.

    The Dow Jones Industrial Average dropped 0.52% to end at 27,076.82 points. At the same time, the S&P 500 fell 0.31% to 2,997.96. The Nasdaq Composite fell 0.28% to 8,153.54. Eight of the 11 main S&P sectors moved lower.

    Also, oil futures rose10% Monday morning as a consequence of the attack. Saudi Arabia suspended 5.7 million barrels of daily production, which is more than 5% of the total production in the whole world.

    Brent crude, the international benchmark, rose 10% to $66.27 in first-day trading. For example, West Texas futures increased by 10.2% to $60.44.

    Oil companies and industrial stocks will benefit from new higher prices. Industrial companies that sell substances, pumps, and vehicles, processors, and sellers or auto parts companies. 

    As energy prices increase, investors may need to evaluate some of these energy stocks.

    Oil Stocks Are Rising Which Ones to Buy

    Some oil companies hit much larger gains as investors hurried to close their positions and avoid losses. For example, Carrizo Oil & Gas CRZO stock rose 19.53%, it had 39% of shares open for trading sold-short, reported FactSet. The shares climbed up 19.5% and close at $10.22. But, it is lower 62% from the 52-week intraday high of $26.67 placed in September last year.

    MarketWatch published a list of energy companies in the S&P 1500 favorable to invest in now. 

    THE LIST IS HERE

    How to determine the good one 

    Investors have to estimate the company’s balance sheet to reveal is it in stable financial status. Does the company have the money to satisfy its business obligations, if market conditions worsen? This is important data. Secondly, investors have to check companies leverage ratio. But the most important factor for oil investors when choosing the oil stock has to be its debt to EBITDA ratio and net debt to capital ratio.

    If a company produces or uses crude oil a debt-to-EBITDA ratio should be below 2.0 times and net debt to capital ratio should be less than 30%. Although, if the company has fee-based cash flow net debt to capital ratio can be 50%.

    Majority of oil companies will issue their current leverage metrics on their website so it is easy to check. 

    Investors should take care of the company’s liquidity. 

    That is money to which a company has immediate access to satisfy its financial obligations. The company must have enough cash for that purposes, a fund for several months, for example. How will you know that? Just divide a company’s declared capital budget by its cash on accounts. 

    An oil stock that is enough protected against a big fall in oil prices owns a stable credit rating, low leverage ratio, and much liquidity. Such companies are good investments, despite the oil prices droppings.