Helmerich & Payne, Incorporated (HP) is involved in the contract drilling of oil and gas wells in the United States and internationally. The company provides drilling rigs, equipment, personnel, and camps on a contract basis to explore for and develop oil and gas from onshore areas and from fixed platforms, tension-leg platforms, and spars in offshore areas. It conducts domestic land drilling primarily in Oklahoma, California, Texas, Wyoming, Colorado, Louisiana, Mississippi, Alabama, Utah, Arkansas, New Mexico, and North Dakota, and offshore drilling from platforms in the Gulf of Mexico, California, Trinidad, and Equatorial Guinea.

The company has good fundamentals led by great sales growth and solid return on equity. The company recently reported record net income of $461,738,000 from operating revenues of $2,036,543,000 for its fiscal year ended September 30, 2008, compared with net income of $449,261,000 from operating revenues of $1,629,658,000 during the prior fiscal year ended September 30, 2007.

Net income for the fourth quarter of fiscal 2008 was $126,485,000 from operating revenues of $583,719,000, compared with net income of $116,410,000 from operating revenues of $449,449,000 during last year's fourth quarter. The company also just announced a dividend increase.

The stock is showing a potential Elliot Wave-5 buy, projecting gains into the $44.14 per share area by the spring months. Helmerich & Payne does have an options market that is actively traded with real good liquidity. The options currently extend through January of 2011 allowing the options trader enough time to take advantage of the forecasted opportunity.

 

Figure 1: Daily Elliott Wave-5 Buy Pattern for Helmerich & Payne
(Source: Profit Source)
click here for larger view

Happy Trading.


Jeff Neal 
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum