Pritchard Capital Out With Industry Update On Oil Rigs (BHI)

Pritchard Capital is out with its industry report on oil rig stocks, particularly Baker Hughes BHI. In the report, Pritchard Capital writes, "The rig count has been on a tear, with Baker Hughes, Inc.'s (BHI-$39.49) tally rising 32 of the 36 weeks year-to-date, increasing by 475 rigs, or 40%, while in comparison Smith International Inc.’s rig count is up 369 rigs, or 31%. BHI pegs the gas rig count gains at 226 rigs, or 48% of the uptick, while Smith International Inc. says 199 incremental gas rigs are working, accounting for 54% of the gains. As such, the land drilling stocks, despite material upward EPS revisions and a firm rig count, are trading at just 64% of their respective 52-week highs and have returned a negative 16% on average year-to-date. We believe the land drilling stocks and other North American levered companies need to be bought..."