Sell Alert
Patterson-UTI Energy (PTEN)
from $100k Portfolio, recommended around $27 on March 2, 2011.
It’s good to have energy exposure in your portfolio. But Patterson-UTI is no longer the answer. The drilling company just reported a 56% drop in second-quarter earnings. As profits have declined, margins have also dropped to just 7.8%. With Patterson profits dropping, the stock has fallen 12% in the last six months. That was enough to convince Standard & Poor’s to downgrade the stock from a “hold” to a “sell” just last week.
The $100k Portfolio has solid exposure to the energy sector. ... Our Patterson-UTI position is small, at less than 1% of our portfolio. Selling this position will allow us to get rid of a company headed in the wrong direction, and concentrate on winners in the energy sector.
Suggested Action: Sell shares of Patterson-UTI Energy.
Ian Wyatt, Ian Wyatt’s $100k Portfolio, www.100kportfolio.com, 866-447-8625, August 12, 2013