Home
Mike Swanson's picture

Patterson-UTI Energy Makes Power Play (Nasdaq: PTEN)

Submitted by Mike Swanson on Tue, 2010-07-06 09:47.

Shares of Patterson-UTI Energy, Inc. (Nasdaq: PTEN) are up over nine percent today on opening trading. Patterson, which owns and operates land-based drilling rigs in the United States announced that it bought the Pressure Pumping and Wireline business of Key Energy Services.

The purchase includes a cash payment of $237.7 million to Key Energy and includes Key’s retention of its working capital.

The sell involves 184,400 hydraulic horsepower and 30,000 horsepower used in primary cementing and 26 electric wireline units.

Patterson shareholders do not experience any stock dilution in this deal.

Patterson has contract drilling operations in Texas, New Mexico, Arkansas, Montana, Pennsylvania, and Western Canada. At end of 2009 its fleet included 341 land-based drilling rigs.

Helping the move is an opening rebound in the US stock market and energy stocks that is coming on the backs of a big downdraft in the stock market last week. Traders are being drawn into companies with positive news such as Patterson-UTI Energy, Inc. today.

»


Sign Up Below to My Free Weekly Newsletter

Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.