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27 pts

Opinion on Boots and Coots International Well Control Inc (WEL) Sector: Energy > Industry: Oil Well Services & Equipment
Boots and Coots, ride the bull

Jul 22, 2008 01:35 PM UTC

abe Loren

Return	Risk
-2.20%	LOW

Sr. Associate

Profile & Performance

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This pick is about: WEL

Rating:	$2.3 (07/22/08)
Closed:	09/02/2008 @ $2.9899 (+30.00% in 42 days)
Target:	$3.20 (+39.13%) in Six months

I've held shares in boots and coots well control since 2.12 and have been rewarded thus far. boots and coots, being a well management company (oil wells) has a great business model to weather the storm of todays bear market. it's services are more highly sought after as oil demand rises. they are in charge of maintaining and controlling oil wells, which involves fire prevention, etc. they have experienced enormous growth in the past couple of years and their estimated price by analysts was raised to 3.25

look for a jump as they announce quarterly results on the 5th of august

Update 07/30:

WEL continues to appreciate

as expected, Boots and Coots continues to appreciate. Their earnings call on august 5 will certainly push this stock upwards.

Some additional calculations; calculating on the current P/E of the company as well as analysts ratings, the stock could very well hit 3.58 at years end.
Accounting for next years estimates and the P/E, the stock may very well hit 4.29

these are on the high-end of the spectrum, but nevertheless are calculated with the formula of multiplying P/E by projected earnings.

Update 07/31:

Boots and Coots scores new contract

One of the two non-merger picks, i am especially fond of Boots and Coots. It has a unique position in the market, is poised for great growth, and has services that are in high demand. (see my original analysis). Now Boots and Coots has scored a new 15 million dollar contract in Libya which will give a nice boost to its earnings and most likely sets a likely stock price in one year of around 4 dollars if not more (also see my earlier calculations, based on figures before this contract)

Article on the contract can be found here:
http://triangle.bizjournals.com/triangle/othercities/houston/...

Update 08/01:

Boots and Coots set for earnings

Boots and Coots is not only set for some impressive earnings, but they will also be heading into earnings with a brand new contract, and a fresh 52-week high. If you missed much of the ride of this stock, you may still want to consider adding it to your portfolio. the growth potential for Boots is incredible; a dominant position in the middle-east market, their business model for the management of oil wells, which involves tasks such as maintenance, fire prevention, security, etc, is in a good position to weather, or actually, dominate this bear market.

---Another Analasys---Boots' Growth in the future--------
You see, not only are Boots and Coots' services in demand as demand for oil rises in the short term, but we can almost guaruntee that although what we call "demand" now will eventually fall back to (or near) the levels of 2-5 years ago, the demand for oil in the future will be on a constant upward trend. that is because oil is a resource which is being depleted, and is estimated to "run out" within the next 50 years.
Taking this fact into account, combined with the likelihood that as current oil sites are drained of their reserves, corporations will be forced to expand their operations, which will certainly require a management group.
Not only will companies expand, however, but they will also become more vocal in their demands that oil sites previously unlawful to drill on (think of the current issues in alaska), become available. one can only assume that because there will be such demand for this, that the sites will, indeed, be opened up, with governments taking advantage of the demand and charging high rates for leases on the sites. this high lease-charge, combined with the expenses of actually surveying the area and extracting oil, will guaruntee that any new oil sites will be a significant investment, which will in turn require that said investment is well-managed and maintained.
Much of this is very forward-looking, but after all, this is a stock which will grow over time, and is a very, very promising investment.