I bought 100 shares in a oil drilling company called Grey Wolf (GW), is this a good company to invest in?

Question

I bought the shares at a about $8.30 per share and now it's down to $5.60 per share. I bought the shares through my 401K...should I pull out or hold my shares till the market gets better?

Answer 1

The stock is rated a 'hold' by most analysts. Don't buy any more and you probably don't want to sell it.

Glancing at the year over year financials their 9-mo financials are worse, but last year they have some one time gains due to asset disposition. They've done some acquisitions this year that are adding to depreciation, but I'm not sure if they're fully productive yet. (you can dig and find out)

Glancing at the balance sheet... the ratios for 07 look better than 06

Answer 2

I live and work in the oilfield in West Texas. Grey Wolf is drilling many wells in this area. They are a very good company with an excellent safety record and treats it employees very well. This time of year is slow for the drilling industry, but after the first of the year (possibly as late as February) the drilling will pick up. There are several wells that Grey Wolf will be drilling. I have seen many drilling companies come and go over the years and I thing Grey Wolf is one of the better ones. If I were you I would hold onto the stock. Grey Wolf is a strong company and I think they will be around for a long time.

Answer 3

I really don't care how nice Grey Wolf is and how great they are to their employees.
The past two earnings seasons have posted negative surprises, meaning they did worse than the Sector Analysts thought they would. They have a negative quarterly growth rate with a projected growth rate of -34% for next year. And they have been downgraded by RBC Capital. You would have been better off with HP ( Helmerich & Payne Inc.).
But i think you already know that since your value has dropped severly.
Just and FYI, NEVER EVER EVER buy individual stocks for a 401K...open a brokerage account for that with discretionary funds, NEVER your retirement money!!!
Whoever told you to do that deserves a swift kick in the junk!

Answer 4

If you want, with 100 shares, you can sell what's called a "Covered Call". Selling a covered call means you're selling someone else the right (but not the obligation) to purchase your shares at a certain price at a certain date.

So for instance, you could sell a Jan-2008 $5.00 covered call at $0.70 a share (earning you $70). http://finance.yahoo.com/q/op?s=GW&k=5.000000

If in January, the stock is worth less than $5.70 ($5 for the sell price, plus $.70 for the contract price), you would get to keep that $70. If the price is higher than $5.70, the person you sold the contract to would have the option to pay $5.00 a share.

If they don't buy your shares, you then have the option to write covered calls month after month.

Answer 5

You must have bought this stock at its high this year.
You must be a new "investor" to have even entered this.
What's worse... you didn't have a stop.........


Rule #1. Understand what you're investing in.
Rule #2. Have an exit plan.
Rule #3. Limit your potential loss on any one stock to no more than 2% of your portfolio.
Rule #4. Have a defined "asset allocation".
Rule #5. Never buy stocks under $10 unless you truly know what you're doing and have been investing for years.

This stock is under it's 50 and 200 day moving average. If I was to look at this at all..... it would be as a "short".

This stock broke its trend line at $6.50.... and you're still in it????????

Answer 6

Isn't it kinda late to ask if this was a good investment? Do your homework first. Invest for the long term. Good Luck, Hope it does well.