Tuesday, May 29, 2018

Integrated Device Technology (IDTI) Short Interest Down 24.6% in May

Integrated Device Technology (NASDAQ:IDTI) was the recipient of a significant drop in short interest in the month of May. As of May 15th, there was short interest totalling 6,328,357 shares, a drop of 24.6% from the April 30th total of 8,395,638 shares. Based on an average trading volume of 1,373,188 shares, the short-interest ratio is presently 4.6 days. Currently, 4.8% of the company’s stock are sold short.

In related news, SVP Sailesh Chittipeddi sold 25,000 shares of Integrated Device Technology stock in a transaction that occurred on Friday, March 16th. The stock was sold at an average price of $32.37, for a total transaction of $809,250.00. Following the transaction, the senior vice president now owns 178,078 shares of the company’s stock, valued at $5,764,384.86. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Chris Allexandre sold 2,721 shares of Integrated Device Technology stock in a transaction that occurred on Thursday, March 15th. The shares were sold at an average price of $32.08, for a total value of $87,289.68. Following the transaction, the vice president now directly owns 47,215 shares in the company, valued at approximately $1,514,657.20. The disclosure for this sale can be found here. Insiders sold 184,845 shares of company stock valued at $5,724,912 in the last three months. Insiders own 1.24% of the company’s stock.

Get Integrated Device Technology alerts:

A number of institutional investors have recently modified their holdings of IDTI. Schwab Charles Investment Management Inc. raised its stake in shares of Integrated Device Technology by 2.7% in the fourth quarter. Schwab Charles Investment Management Inc. now owns 833,551 shares of the semiconductor company’s stock valued at $24,782,000 after buying an additional 21,932 shares during the period. Congress Asset Management Co. MA raised its stake in shares of Integrated Device Technology by 1.3% in the fourth quarter. Congress Asset Management Co. MA now owns 257,142 shares of the semiconductor company’s stock valued at $7,645,000 after buying an additional 3,309 shares during the period. Mutual of America Capital Management LLC raised its stake in shares of Integrated Device Technology by 2.0% in the fourth quarter. Mutual of America Capital Management LLC now owns 219,610 shares of the semiconductor company’s stock valued at $6,529,000 after buying an additional 4,269 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its stake in shares of Integrated Device Technology by 47.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,623 shares of the semiconductor company’s stock valued at $227,000 after buying an additional 2,441 shares during the period. Finally, Wedge Capital Management L L P NC raised its stake in shares of Integrated Device Technology by 2.7% in the fourth quarter. Wedge Capital Management L L P NC now owns 1,353,283 shares of the semiconductor company’s stock valued at $40,233,000 after buying an additional 35,424 shares during the period. Institutional investors and hedge funds own 96.85% of the company’s stock.

Shares of Integrated Device Technology opened at $33.52 on Tuesday, MarketBeat.com reports. The firm has a market cap of $4.33 billion, a P/E ratio of 26.39, a price-to-earnings-growth ratio of 2.16 and a beta of 1.86. Integrated Device Technology has a 12 month low of $23.07 and a 12 month high of $34.13. The company has a debt-to-equity ratio of 0.76, a quick ratio of 4.23 and a current ratio of 4.83.

Integrated Device Technology (NASDAQ:IDTI) last issued its quarterly earnings results on Monday, April 30th. The semiconductor company reported $0.46 EPS for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.02. The business had revenue of $224.60 million for the quarter, compared to analyst estimates of $222.20 million. Integrated Device Technology had a positive return on equity of 23.10% and a negative net margin of 1.44%. Integrated Device Technology’s quarterly revenue was up 27.8% compared to the same quarter last year. During the same period last year, the company posted $0.35 earnings per share. research analysts anticipate that Integrated Device Technology will post 1.43 EPS for the current year.

Several research analysts recently issued reports on the company. BidaskClub raised Integrated Device Technology from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, March 21st. KeyCorp lifted their target price on Integrated Device Technology from $33.00 to $37.00 and gave the company an “overweight” rating in a research report on Tuesday, January 30th. Craig Hallum reaffirmed a “buy” rating and set a $40.00 target price (up previously from $36.00) on shares of Integrated Device Technology in a research report on Tuesday, January 30th. TheStreet raised Integrated Device Technology from a “c+” rating to a “b” rating in a research report on Wednesday, May 23rd. Finally, Bank of America raised Integrated Device Technology from an “underperform” rating to a “neutral” rating and set a $30.00 target price on the stock in a research report on Tuesday, May 1st. Four investment analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $34.67.

Integrated Device Technology Company Profile

Integrated Device Technology, Inc designs, develops, manufactures, and markets a range of semiconductor solutions for the communications, computing, consumer, automotive, industrial, and Internet-of-things end-markets. It operates in two segments, Communications; and Computing, Consumer, and Industrial.

Monday, May 28, 2018

Zacks: Analysts Anticipate Amber Road Inc (AMBR) Will Post Earnings of -$0.06 Per Share

Equities analysts expect that Amber Road Inc (NYSE:AMBR) will report ($0.06) earnings per share for the current quarter, according to Zacks. Two analysts have made estimates for Amber Road’s earnings. Amber Road posted earnings of ($0.12) per share during the same quarter last year, which indicates a positive year-over-year growth rate of 50%. The firm is expected to announce its next quarterly earnings report on Thursday, August 2nd.

On average, analysts expect that Amber Road will report full year earnings of ($0.18) per share for the current year, with EPS estimates ranging from ($0.20) to ($0.15). For the next fiscal year, analysts expect that the business will post earnings of ($0.11) per share, with EPS estimates ranging from ($0.11) to ($0.10). Zacks Investment Research’s earnings per share averages are an average based on a survey of research analysts that cover Amber Road.

Get Amber Road alerts:

Amber Road (NYSE:AMBR) last posted its earnings results on Thursday, May 10th. The software maker reported ($0.04) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.08) by $0.04. Amber Road had a negative net margin of 14.56% and a negative return on equity of 44.17%. The company had revenue of $20.10 million during the quarter, compared to analysts’ expectations of $20.05 million. During the same quarter in the prior year, the company posted ($0.12) earnings per share. Amber Road’s revenue for the quarter was up 8.1% compared to the same quarter last year.

A number of research firms recently commented on AMBR. ValuEngine raised shares of Amber Road from a “hold” rating to a “buy” rating in a research report on Thursday, May 17th. Needham & Company LLC raised their price target on shares of Amber Road from $11.00 to $13.00 and gave the stock a “buy” rating in a report on Friday, February 16th. Finally, Canaccord Genuity cut shares of Amber Road from a “buy” rating to a “hold” rating and raised their price target for the stock from $9.74 to $10.00 in a report on Friday, February 16th. Two analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus price target of $11.75.

NYSE:AMBR opened at $9.35 on Wednesday. Amber Road has a 52 week low of $6.14 and a 52 week high of $10.29. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.68.

In other Amber Road news, CEO James W. Preuninger sold 50,000 shares of the firm’s stock in a transaction on Thursday, May 17th. The shares were sold at an average price of $9.50, for a total value of $475,000.00. Following the completion of the transaction, the chief executive officer now owns 1,800,184 shares of the company’s stock, valued at $17,101,748. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Thomas E. Conway sold 9,686 shares of the firm’s stock in a transaction on Tuesday, May 15th. The stock was sold at an average price of $9.31, for a total transaction of $90,176.66. The disclosure for this sale can be found here. In the last ninety days, insiders sold 79,606 shares of company stock valued at $751,183. Corporate insiders own 15.10% of the company’s stock.

Large investors have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company increased its stake in shares of Amber Road by 59.2% in the first quarter. The Manufacturers Life Insurance Company now owns 17,872 shares of the software maker’s stock worth $160,000 after acquiring an additional 6,643 shares during the period. Wells Fargo & Company MN increased its stake in shares of Amber Road by 73.6% in the third quarter. Wells Fargo & Company MN now owns 20,167 shares of the software maker’s stock worth $155,000 after acquiring an additional 8,547 shares during the period. Spark Investment Management LLC acquired a new stake in shares of Amber Road in the first quarter worth $198,000. Goldman Sachs Group Inc. acquired a new stake in shares of Amber Road in the fourth quarter worth $168,000. Finally, Citadel Advisors LLC acquired a new stake in shares of Amber Road in the first quarter worth $208,000. Hedge funds and other institutional investors own 68.04% of the company’s stock.

About Amber Road

Amber Road, Inc provides cloud-based global trade management (GTM) solutions in the United States and internationally. The company's GTM solutions include modules for logistics contract and rate management; supply chain visibility and event management; international trade compliance; and global knowledge trade content database, supply chain collaboration with overseas factories and vendors, and duty management solutions to importers and exporters, nonvessel owning common carriers (resellers), and ocean carriers.

Get a free copy of the Zacks research report on Amber Road (AMBR)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Friday, May 25, 2018

Hot Energy Stocks To Invest In Right Now

tags:NI,HIFR,IEC, &l;p&g;&l;img class=&q;dam-image getty size-large wp-image-508336438&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/508336438/960x0.jpg?fit=scale&q; data-height=&q;637&q; data-width=&q;960&q;&g; An aerial view of the solar mirrors at the Noor 1 Concentrated Solar Power plant in Morocco. The North African country has approved a new $2.4bn 800MW scheme. (FADEL SENNA/AFP/Getty Images)

Emerging markets dominated investment in clean energy in the first quarter of 2018, with more than 40% of funding going to projects in China, while there were notable developments in Mexico, Morocco, Indonesia and Vietnam.

Total investment for the first three months of the year was $61.1 billion, 10% lower than the same period in 2017, according to Bloomberg New Energy Finance (BNEF). Using slightly different criteria, Clean Energy Pipeline said that the figure was $62.1 billion.

One reason for the fall in investment was a 19% drop in solar funding, partly as a result of a 7% fall in the price of photovoltaic equipment over the past year, and partly because of weaker activity in some markets.

Hot Energy Stocks To Invest In Right Now: NiSource, Inc(NI)

Advisors' Opinion:
  • [By Ethan Ryder]

    Wedbush Securities Inc. raised its holdings in NiSource (NYSE:NI) by 25.3% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 13,858 shares of the utilities provider’s stock after acquiring an additional 2,800 shares during the period. Wedbush Securities Inc.’s holdings in NiSource were worth $331,000 at the end of the most recent reporting period.

  • [By Lisa Levin]

    Breaking news

    Amphastar Pharmaceuticals, Inc. (NASDAQ: AMPH) disclosed that it received the FDA approval for Calcium Chloride injection. Rapid7, Inc. (NASDAQ: RPD) reported a proposed offering of 3 million shares. Yuma Energy Inc (NYSE: YUMA) reported a Q1 loss of $0.16 per share on sales of $5.646 million. The company also disclosed that it is actively seeking strategic alternatives. NiSource Inc. (NYSE: NI) disclosed a 24.96 million share common stock offering via selling holders.

  • [By Lisa Levin]

    Some of the stocks that may grab investor focus today are:

    Wall Street expects Agilent Technologies, Inc. (NYSE: A) to post quarterly earnings at $0.64 per share on revenue of $1.21 billion after the closing bell. Agilent shares rose 0.86 percent to close at $69.45 on Friday. Analysts expect Hanwha Q CELLS Co., Ltd. (NASDAQ: HQCL) to report quarterly earnings at $0.14 per share on revenue of $438.40 million before the opening bell. Hanwha Q CELLS shares fell 0.29 percent to close at $6.92 on Friday. NiSource Inc. (NYSE: NI) disclosed a 24.96 million share common stock offering via selling holders. NiSource shares rose 0.08 percent to close at $24.93 on Friday. Analysts are expecting Vipshop Holdings Limited (NYSE: VIPS) to have earned $0.18 per share on revenue of $3.10 billion in the latest quarter. Vipshop will release earnings after the markets close. Vipshop shares rose 0.20 percent to $15.14 in after-hours trading.

    Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Hot Energy Stocks To Invest In Right Now: InfraREIT, Inc.(HIFR)

Advisors' Opinion:
  • [By Joseph Griffin]

    Get a free copy of the Zacks research report on InfraREIT (HIFR)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Shane Hupp]

    Reaves W H & Co. Inc. trimmed its holdings in InfraREIT (NYSE:HIFR) by 18.4% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,342,026 shares of the real estate investment trust’s stock after selling 303,392 shares during the quarter. Reaves W H & Co. Inc. owned approximately 3.05% of InfraREIT worth $26,076,000 as of its most recent SEC filing.

Hot Energy Stocks To Invest In Right Now: IEC Electronics Corp.(IEC)

Advisors' Opinion:
  • [By Lisa Levin] Gainers Liberty TripAdvisor Holdings, Inc. (NASDAQ: LTRPA) shares jumped 31.6 percent to $12.18 following TripAdvisor Q1 earnings beat. ZAGG Inc (NASDAQ: ZAGG) rose 26.5 percent to $14.55 after the company posted better-than-expected Q1 earnings. OPKO Health, Inc. (NASDAQ: OPK) shares gained 25 percent to $4.0234 following Q1 beat. Axon Enterprise, Inc. (NASDAQ: AAXN) jumped 23.5 percent to $55.12 following a big Q1 beat. The company raised its fiscal 2018 sales growth guidance from 16-18 percent to 18-20 percent. Penn Virginia Corporation (NASDAQ: PVAC) gained 23.3 percent to $59.00 after reporting Q1 results. TripAdvisor, Inc. (NASDAQ: TRIP) rose 22.5 percent to $47.51 after the company reported stronger-than-expected results for its first quarter on Tuesday. Sears Holdings Corporation (NASDAQ: SHLD) shares surged 21.7 percent to $3.36. Amazon.com's partnership with Sears started in 2017 with an agreement to sell Kenmore-branded appliances online. On Wednesday, the companies announced an extension of their relationship to now include tire delivery and installations. EP Energy Corporation (NYSE: EPE) jumped 21.3 percent to $2.68 following Q1 results. LendingClub Corporation (NYSE: LC) surged 20.4 percent to $3.395 following better-than-expected Q1 earnings. Superior Industries International, Inc. (NYSE: SUP) gained 19 percent to $15.82 after reporting Q1 results. Bellicum Pharmaceuticals, Inc. (NASDAQ: BLCM) shares rose 18.5 percent to $8.13 following Q1 results. Twilio Inc. (NYSE: TWLO) rose 18.3 percent to $52.47 after the company posted strong quarterly results. Cerus Corporation (NASDAQ: CERS) shares jumped 18.3 percent to $6.47 following quarterly results. IEC Electronics Corp. (NYSE: IEC) shares climbed 17 percent to $4.68 after reporting better-than-expected quarterly earnings. New Relic, Inc. (NYSE: NEWR) rose 16.8 percent to $90.10 following Q4 results. Gulfport Energy Corporation (NASDAQ: GPOR)

Tuesday, May 22, 2018

Investors seem to forget that markets can and will go down. It's called risk amnesia

Prolonged bull markets with periods of low volatility can create risk complacency and even "risk amnesia." Any subsequent market correction and/or spike in volatility often shakes investors out of their state of complacency and ignites a sense of fear of what they may have temporarily forgotten �� that markets can and will go down.

While market drawdowns are inevitable and necessary for healthy markets, investors don't exactly jump for joy when one occurs. Because loss aversion is such a strong emotional driver, it is typical for many investors to quickly panic.

Market crash H. Armstrong Roberts/ClassicStock | Getty Images

However, corrections offer an opportunity to evaluate risk and how well positioned they are for an eventual bear market.

By comparing the intensity, recovery and duration of corrections and bear markets and their impacts on investors, we can assess where risk management efforts should focus.

Investing opens investors up to the possibility of losses �� but not all losses are equal. Understanding the differences between a correction and a bear market may help investors better handle or prepare for them.

In the past 20 years, the S&P 500 Index has experienced five corrections (not including the corrections occurring as part of the bear markets) and two bear markets.

Corrections are often defined as losses in market value exceeding 10 percent but less than 20 percent and happen from a market high. Corrections have historically lasted from between a few weeks to a few months.

More from Straight Talk:
Even if bitcoin crashes, blockchain is the future
Micro-investing builds wealth bit by bit
How to pick a new financial advisor

Bear markets are defined as losses in market value of 20 percent or more and have historically lasted several months to several years. The losses experienced in bear markets are more intense and require longer recovery periods on average than corrections.

The intensity of the drawdown measures how much market value was lost. Over the last 20 years, the most intense correction delivered a 19 percent drawdown, and the least intense corrections created a market value loss of about 12 percent to 13 percent.

By comparison, the magnitude or intensity of losses during bear markets are often more difficult for investors to stomach. Although a bear market is defined as losses in value of more than 20 percent, the two in the past 20 years were more than ��47 percent �� more than double the losses caused by the worst corrections.

The intensity and effects of a bear market are much more painful, especially when we consider time of recovery. Recovery time refers to how long it takes for the market to recoup its losses and return to pre-fall levels. Mathematically speaking, the larger the loss, the larger the gain needed to recover.

The ��13 percent drawdown of the 2015-16 correction took about two months to recover, while the ��19 percent correction in 1998 took only about three months. The ��11 percent drop in 2000, though, took almost five months to recover.

Sign Up for Our Newsletter Your Wealth Weekly advice on managing your money SIGN UP NOW Get this delivered to your inbox, and more info about about our products and service. Privacy Policy. .investigation-wrapper .description{ text-align:center; padding-bottom:15px; } .nl-privacy{ font-size: 10px; padding-top: 20px; display:block; } .wildcard .investigation-wrapper { -webkit-box-shadow: 0px 0px 4px 0px #999999; /* Android 2.3+, iOS 4.0.2-4.2, Safari 3-4 */ box-shadow: 5px 5px 5px 0px #999989; } .subsection .investigation{ background: #efefef; border-radius: 3px; padding: 10px 20px 20px 20px; } .investigation small{white-space:normal;} .subsection .investigation h1{ text-transform: uppercase; text-align: center; font-family: "Gotham Narrow Ssm 5r"; margin-bottom: 0px; padding-bottom:0px; font-size: 18px; margin-top: 10px; word-spacing: 1.5px; color: #333333; } .subsection .investigation .headline_title { font-size: 28px; padding-top: 20px; display: block; font-family: "Gotham Narrow Ssm 7r"; padding-bottom:5px; } .subsection .email-info { background: rgba(74, 144, 226, 1); max-width: 140px; margin: 0px auto; text-align: center; padding: 6px 1px; color: #fff; border-radius: 5px; } .subsection .email-info { color:#fff; } .subsection .email-info:hover{ background: #2077B6; } body .subsection.investigation-wrapper{overflow:visible;}

Despite the discrepancy between corrections' drawdowns and recovery times over the last 20 years, they all took less than half a year to recover. The recovery for the two bear markets of the 21st century, however, required years.

The duration of a drawdown includes the total length of time the market took to fall from a peak to the trough and the length of time to recover the losses back to the pre-drawdown level.

The bear market during the dot-com bust of 2000��2002 was a slightly smaller drawdown than the bear market during the financial crisis of 2008��2009, but its duration was much longer. Neither was much fun for investors.

Generally speaking, corrections take less time overall, from fall to recovery, with the duration of corrections lasting less than a year and bear markets going beyond four years. If, on average, it takes less than a year for investors to move on from a correction, are they really worth all the fuss?

"In an industry too often focused on short-term returns, corrections can cause shortsighted reactions that negatively impact long-term plans."

Corrections are often a wake-up call for investors to consider risk. But if investors and their portfolios are unable to withstand a 10 percent correction, are they prepared for the possibility of an actual bear market?

In an industry too often focused on short-term returns, corrections can cause shortsighted reactions that negatively impact long-term plans. Corrections come and go, with market losses and recoveries occurring within the span of weeks or months. As such, corrections are, generally speaking, a blip on the investment journey: They don't derail investors from their financial goals.

Bear markets cause more significant losses that can often take years to recover from and can be plan-altering and life-changing, both financially and emotionally.

Because one cannot invest in risk assets and protect against both corrections and bear markets at the same time, risk-management efforts should focus more on bear markets rather than corrections.

�� By Micah Wakefield, director of research and product development at Swan Global Investments

Monday, May 21, 2018

D.E. Shaw & Co. discloses 5.1% stake in Yelp

Hedge-fund D.E. Shaw & Co. LP late Monday revealed a 5.1% stake in online-review site Yelp Inc. YELP, +0.02% A Securities and Exchange Commission filing showed that D.E. Shaw has accumulated 4.1 million shares, in what amounts to a passive stake in the company. Yelp's shares have climbed 10.7% so far in 2018, outperforming the market, with the S&P 500 index SPX, +0.74% up 2.2%, the Dow Jones Industrial Average DJIA, +1.21% gaining 1.2% over the same period and the technology-laden Nasdaq Composite Index COMP, +0.54% advancing by 7.1% thus far this year, according to FactSet data. Yelp shares weren't moving in after-hours trade Monday, after finishing the regular session flat on the day at $46.45.

Sunday, May 20, 2018

Ocean Rig UDW - Are We At The Bottom?

Image: Ocean Rig Poseidon from OET.

Investment Thesis

Ocean Rig UDW (ORIG) emerged from a devastating bankruptcy on September 21, 2017, which left common shareholders bruised and with only an infinitesimal fraction of what they have invested initially in the company.

That day, Ocean emerged with a fresh balance sheet whereas shares outstanding decreased to 8,975 shares, after implementing a 1-for-9,200 reverse stock split of the then-existing shares of the company's issued common stock. Furthermore, the company issued an aggregate of 90,651,603 common shares of the company under the scheme for a total outstanding of 90,660,578 shares.

The new company is now in a better financial shape with a balance sheet more suitable to survive until the floaters' recovery that many expect will take effect late this year or early 2019. The company backlog is still significant at approximately $822 million as of May 15, 2018.

One caveat, the backlog is based on one single long-term contract with Total (NYSE: TOT) until September 2021, which is renegotiated at the moment and could be either extended or worse terminated with compensation.


Note: In case of early termination, the company said that the deal is protected by a proper termination clause that will secure over $600 million in payment, which is still a potential net loss of $140-160 million in backlog.

On April 20, 2018, the company, under the previously announced agreement, made the $35.0 million interim yard installment payment to Samsung Heavy Industries in connection with the construction of the Ocean Rig Santorini. Under the agreement with SHI, the delivery of the Ocean Rig Santorini has been postponed to September 2019 but may be brought forward at the option of the company.

Pankaj Khanna, the CEO, said in the previous conference call:

If the rig is not fixed then there are termination payments, which basically is a waterfall, starting with 100% for 180 days and then it's 90%, 75% and drops down to 50%. But in essence, it's a $600 million decision that the customer has to make.

Chart ORIG data by YCharts

ORIG offers an opportunity at under $25, assuming we effectively experience a floaters' recovery later this year. I see a recovery more likely now that oil prices trade between $75 and $80 per barrel. Mr. Khanna said in the conference call:

Oil prices have on an outward trajectory since the middle of 2017, but the improvement has accelerated in 2018 due to fundamentals and geopolitical factors. Brent prices have touched $80 per barrel as the U.S. withdrew from the JCPOA agreement with Iran. The re-imposition of sanctions on Iran could mean the removal of up to 1 million barrels per day of crude oil exports from the country. That is a strong positive for the oil prices.

This favorable opinion has been echoed by some other offshore drillers recently such as Transocean (NYSE: RIG), which is the poster child of the industry.

However, it is still too early to bet on such bullish forecast and its effects on Ocean Rig's bottom line, and I recommend to invest only a small amount at this level.

Pankaj Khanna, the CEO, said in the conference call:

[W]e would like to remind you of our high-quality assets. We own 5 6th generation assets that have a strong proven track record in Brazil and West Africa and 4 high-spec 7th generation drillships. When the market recovers, these assets will be significant cash generators. Despite the market downturn, our financial flexibility allows us to high-grade our assets further as demonstrated by the installation of the MPD kit for the Ocean Rig Mykonos and potentially also for the Ocean Rig Corcovadom, which is already MPD ready. In addition, we are exposed with the harsh environment segment, operating the Leiv Eriksson in Norway.

Stock repurchase plan

On April 16, 2018, Ocean Rig UDW's Board of Directors announced it had authorized a stock repurchase plan, under which the company may repurchase up to $150 million of its outstanding common shares for 12 months from a date to be determined by the Board.

Ocean Rig may repurchase shares in privately negotiated or open-market purchases by applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. Commencement of the Plan will be at the discretion of and subject to the approval of the company's Board of Directors.

No change this quarter.

Ocean Rig Balance sheet - The Raw Numbers
ORIG 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18
Total Revenues in $ Million 508.01 452.56 302.81 284.50 200.85 219.35 194.14
Net Income in $ Million 287.19 155.60 92.19 56.82 ��233.83 79.42 54.85
EBITDA 463.64 320.52 179.92 120.98 ��129.01 131.31 75.29
Profit margin % (0 if loss) 0.57 0.34 0.30 0.00 0.00 0.36 0.28
EPS diluted in $/share 18 991 17 339 10 300 6 305 ��16 634 28.09 0.60
Operating Cash flow in $ Million 229.91 84.39 - 367.53 99.62 76.22 106.73
CapEx in $ Million 217.65 29.07 - 24.59 11.90 0.51 5.79
Free Cash Flow in $ Million 12.30 66.20 - 342.90 87.70 75.70 100.94
Total Cash in $ million 754.7 718.7 - 941.6 695.8 736.1 749.2
Total Debt in $ Billion 3919.4 3887.8 - 3800.5 567.1 531.6 397.0
Shares outstanding (diluted) in million 0.151 0.092 0.090 0.090 90.661 91.568 91.568

Source: company filing and Morningstar.

For the first quarter of 2018, the company reported net income of $54.9 million, or $0.60 basic and diluted earnings per share as compared to a net income of $92.2 million, or $10,300.45 basic and diluted earnings per share, for the three-month period ended March 31, 2017.

Free cash flow is now $607.24 million on a yearly basis.

Commentary and technical analysis

The deepwater and ultra-deepwater have not shown any definitive signs of a nascent recovery despite the fact that we are experiencing a bullish momentum in oil prices which are now trading at nearly $80 per barrel looks like the magic bullet.

Meanwhile, the recent presentation is giving a good look at what is going on, and the number of tenders around the world for floaters is impressive but are not totally what the offshore drilling industry needs the most. Pankaj Khanna, the CEO, said in the conference call:

However, the length of programs awarded is quite short as reflected by the graph on the left. This reflects the phenomenon of the last couple of years, where most of the development projects have been field expansions, Phase 2s and tie-backs and very little exploration. Therefore, most oil companies have been taking rigs for a well-by-well campaign

Source: ORIG Presentation 1Q'18

Nonetheless, it is encouraging for ORIG, especially for 2019.

Furthermore, ORIG had no net debt as of March 31, 2018, and total cash is $749.2 million at the end of 1Q'18, with total long-term debt around $397 million (This estimate would explain the use of $150 million for a shares buyback potential.)

On May 8, 2018, the company prepaid in full the remaining outstanding balance of $43.8 million on its $462 million senior secured credit facility, with no prepayment penalty.

It is a good balance sheet, and ORIG seems attractive now. However, a better approach, in my opinion, is to wait patiently one to two more quarters before triggering the buy button. The risk is perhaps too high for the reward potential, and a trading strategy may be more suitable for the stock?

Note: One significant negative is the price per share that I find too high and will not allow a considerable increase potential in the near and midterm future. It is something that an investor should keep in mind.

Technical analysis

ORIG experienced a decisive breakout yesterday and crossed its rising wedge pattern with substantial volume. A rising wedge is generally considered bearish and is usually found in downtrends, but in this case, I expect ORIG to re-test $29 (double top - sell flag) and eventually retrace.

However, ORIG will continue to trend up only if oil prices can maintain their bullish momentum and I am not convinced that oil can keep going up.

I expect ORIG to eventually to re-test its new support at $25.40 (buy flag) and eventually trend up again after that. I recommend a very cautious accumulation due to the history of this company.

Author's note: Do not forget to follow me on the oil sector. Thank you for your support, I appreciate it. If you find value in this article and would like to encourage such continued efforts, please click the "Like" button below as a vote of support. Thanks!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.