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Investment Analysis Clubs / Grape's Fisher Kings


Subject:  Re: Is Anyone Out There Date:  3/7/2007  11:45 PM
Author:  PhilWeiss Number:  2787 of 2794

I know the analyst that covers BJ Services likes the company's prospects, but it's not one I cover, so I can't really offer a meaningful comment. Of the 24 companies I cover six are services companies but mine all market various rig types, which is not what BJS does. I think the industry has some good investment candidates. My favorite services company is Helmerich & Payne, which is a small-cap. Today, the company announced it will be adding two more rigs to its fleet (making a total of 75 new rigs since 2005) and moving into the Calfornia market for the first time.

Here's an excerpt from my investment thesis:

U.S. gas drilling activity has experienced some recent weakness. However, HP's rigs reduce drilling time per well, can move more quickly from well to well, and can drill with increased precision and measurability. Thus, even though HP charges premium day rates,
users of its FlexRigs can significantly reduce their total costs per well, giving HP a competitive advantage.

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