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  • 4 Oil & Gas Stocks Pumping Out Big Profits With Strong Mutual Fund Interest [View article]
    CJES is a leader for specialized fracking jobs. On the ground, CJES has a very good reputation and has attracted talented workers. They are known to provide a superior service at a premium unlike competitors such as Key Energy Services, Basic Energy Services, and Platinum Energy who charge the lowest rates possible. In the services industry, E&P’s trust their highest potential wells to companies like C & J, Halliburton, Baker Hughes, and Schlumberger who always deliver results. They will continue to attain long term contracts for their current and future fleets. Oil production will continue to dramatically increase and more than offset the falling dry gas prices. It takes on average around 40 days to drill a well in the Haynesville. But, in the Permain Basin and the Eagle Ford it takes on average 27 days and 16 days which equates to more service revenues and a large backlog of wells for pressure pumping. Not to mention, now E&P companies are drilling twice as many wells on each pad site. Then take a visit to Odessa, TX and be blown away by the amount of current oil production and future drill sites. But, natural gas prices are dictating the direction of all service companies’ stock prices. The market continues to overlook that fact that there is an oil boom in TX, OK, and KS. CNBC only mentions the Bakken Shale while they focus on unprofitable business with unsustainable business models. After CJES releases info on the contacts of Fleet 1 and 2 which are set to expire at mid-year this will be the catalyst that will take CJES out of its current trading range of $18-$22. All the oil and gas services companies are extremely cheap but there is no telling when the market will realize their value.
    Mar 14 02:12 PM | 3 Likes Like |Link to Comment
  • RPC Inc: Is Rising Oil Production Saving The Economy? [View article]
    The point of the article is to demonstrate the strength of the oil and gas services industry. The fact that they are all doing so well in a unfriendly political environmental demonstrates their strength. They will not put a moratorium on fracking because it would be political suicide and cause the crash of our fragile economy. Fracking is proven to be a safe and effective way to extract gas and oil.

    So if I'm hearing you correctly your telling me that higher energy prices will create jobs. I going to have to disagree. If we could no longer frack then the energy prices would skyrocket causing disposable income to dramaticaly fall causing an economic crash.
    May 21 04:06 PM | 2 Likes Like |Link to Comment
  • Taking A Stake In Natural Gas With Carbo Ceramics [View article]
    Carbo is not free from the risks associated with fracking. If a nationwide moratorium was put in place there would be no need to buy Carbo's products. Hydraulic fracturing is here to stay because it creates jobs and tax revenue. The risk of regulation is always a concern when it comes to fossil fuel extraction. Throughout the years, issues come and go but Oil & Gas companies continue to make money. Carbo is fairly valued with limited growth and more attractive investments exsist in (CJES), (RES), and (HAL). The previously mentioned companies have more upside potential and the same downside as Carbo
    Apr 3 01:56 PM | 2 Likes Like |Link to Comment
  • 4 Oil & Gas Stocks Pumping Out Big Profits With Strong Mutual Fund Interest [View article]
    Here is a quick comparison of C & J Energy Services (CJES) and Basic Energy Services (http://bit.ly/wIdRmS):

    First, many service companies sell their services at a discount in order to open the door to their more profitable products (Pressure Pumping, Hydraulic Fracturing, and Coiled Tubing). This decreases the overall profitability of the business which is why I find CJES so appealing. CJES focuses on the highest margin part of the Oil and Gas Services industry (Hydraulic Fracturing).

    All information provided below is directly from both the CJES and BAS 2011 annual report filed with the SEC.

    Basic Energy Services (http://bit.ly/wIdRmS)
    “In 2011, our completion and remedial services segment represented 43% of our revenues. Our completion and remedial services segment includes pumping services, rental and fishing tool operations, coiled tubing services, nitrogen services, water treatment, cased-hole wireline services, snubbing and underbalanced drilling.”
    “Our pumping services business focuses primarily on lower horsepower cementing, acidizing and fracturing services markets. Currently, there are several pressure pumping companies that provide their services on a national basis. For the most part, these companies have concentrated their assets in markets characterized by complex work with higher horsepower requirements. This has created an opportunity in the markets for pressure pumping services in mature areas with less complex characteristics and lower horsepower requirements. We, along with a number of smaller, regional companies, have concentrated our efforts on these markets. One of our major well servicing competitors also participates in the pressure pumping business, but primarily outside our core areas of operations for pumping services.”

    Basic Energy Services does not service high profile wells. They are implying that they service vertical wells which is a profitable business but does not deserve to trade at a premium. They also have $749 million in long term debt as of 12/31/2011.

    C & J Energy Services (http://bit.ly/y3V0JR)
    States their competitors of fracturing services as: Halliburton, Schlumberger, Baker Hughes, Weatherford International, RPC, Inc., Superior Energy Services, and Frac Tech. They receive 81.7% of total revenue from hydraulic fracturing services which I believe which have the most growth potential. They have no long term debt with a $200 million revolving credit facility of which none has been withdrawn. All expenditures will be able to be financed through cash flow with no need to tap credit facility or issue debt. C and J Energy Services is a very attractive buyout opportunity due to the low debt and industry leading margins.

    I can’t tell you when a company will break out of its trading range but I can suggest focusing on the margin of safety. C & J Energy Services superior reputation, strong balance sheet, and significantly undervalued stock price will equal Superior Profits for CJES shareholders. CJES deserves to trade at a premium for the above mentioned reasons.
    Mar 15 12:28 AM | 2 Likes Like |Link to Comment
  • Atlas Resource Partners: 9% Yielder Is Too Cheap After Pullback [View article]
    This company is on sale for sure and its general partners is a buy as well. The management team has been executing on all cylinders since 2010.
    Jun 10 06:05 PM | 1 Like Like |Link to Comment
  • Jaguar Mining: When The Market Tells You To Run [View article]
    What valuation model did you use to calculate $2 a share?
    Jul 12 04:12 PM | 1 Like Like |Link to Comment
  • RPC Inc: Is Rising Oil Production Saving The Economy? [View article]
    Our original intent was to highlight the fact that RPC, Inc is a great company that has good margins and is growing earnings at a very respectable rate. It also has a great dividend. The oil service sector has been trading at multi year lows in the aspect of P/E multiples. During the last decade the high for yearly average of earnings for a multiple perspective was 25 times earnings and yearly low was 10 and that was during 2009 when companies across the board reported severe impairment to earnings.

    The conclusion is that two things are weighing on the multiples, that is the over reaction to the price of natural gas. The second and the elephant in the room so to speak is the current administration propensity of over regulation and known feeling in regards to fossil fuels. If an investor does not think that if there is a new administration in office and this wont have a positive effect on the multiples then an investor is not being honest with themselves.

    We believe that the multiples should be higher with these companies executing and fears of service sector be severely hampered is overblown. Then throw in the downward pressure that is associated with the current administration office not being there after November, if Romney wins, we believe the sector will go back to its historical P/E range.

    We challenge anybody to do an accurate analysis on the impact of future regulation on fracking. You can’t cause who knows what type of regulation the EPA will try to enforce going forward and not knowing who will be in office. If someone is able to put together accurate analysis then our hat's off them. Our opinion is if Obama wins its not going to be good for domestic energy industry. If Romney wins then there will be a pro domestic drilling administration and any new regulation wont be severe. 
    May 21 08:08 PM | 1 Like Like |Link to Comment
  • RPC Inc: Is Rising Oil Production Saving The Economy? [View article]
    The energy sector is not considered a safe place to be on wall street due to the risks associated with fracking. I'm ready for Harold Hamm to be the new energy adviser under Romney. Get ready to see the energy services sector to explode with the forthcoming change in the White House.
    May 21 10:10 AM | 1 Like Like |Link to Comment
  • Jaguar Mining: An Activist Investor Waiting To Pounce [View article]
    Hearing IAMGOLD is Pursing an Acquisition of Jaguar Mining

    The Rumor:

    IAMGOLD (NYSE: IAG) is looking to acquire Jaguar Mining (NYSE: JAG), according to sources. Jaguar has been the subject of chatter involving China's Shandong Gold. It was rumored last week that Shandong had withdrawn an unconfirmed offer to acquire Jaguar.

    Benzinga spoke Friday with a representative of IAMGOLD who said that Jaguar Mining was one of 50 companies they have evaluated over the past year, but she would not comment specifically if they were actively pursing the Brazilian miner.
    Jaguar Mining closed at $3.54 Friday, a loss of 4.84% on twice the average daily volume.

    Read more: http://bit.ly/IpL97M
    Apr 15 05:51 PM | 1 Like Like |Link to Comment
  • Jaguar Mining: An Activist Investor Waiting To Pounce [View article]
    Bretb,

    Thanks for the upbeat post! I am simply stating facts in all of my articles with a slight bit of interpretation. When I say we will find out this quarter I am more referring to the expiration of the shareholder rights plan which they initiated on March 21 and expires 120 days after.

    There is no question that management has dropped the ball on Jaguar. Im not sure if that had more to do with the Ex-CEO or the current "Special Committee."
    Apr 13 04:10 PM | 1 Like Like |Link to Comment
  • Jaguar Mining: Q2 2012 Buyout Decision Could Offer 80% Upside [View article]
    The market doesn’t believe that management will be able to reach a deal. The day of the reported Shandong Gold bid, the stock reached $7.80 which is still substantially lower than the offered $9.30. Management has been in talks with other companies for a possible collaboration or partnership since Q2 2010. They were trying to solidify financing for the Gurupi mine which I believe might have caused the unsolicited offer.

    Remember, Jaguar has a historically large % of short interest. Management identified that the 2014 convertibles were capping the equity’s value. They were looking at possible options for a possible tender or issue high yield debt to remove this large short interest.

    Management must know that they only way this stock is going higher is if they accept a buyout. Management has never discussed finding a new CEO. This would be top priority if they were only looking at obtaining financing for the Gurupi mine.
    Mar 27 04:26 AM | 1 Like Like |Link to Comment
  • Jaguar Mining: Q2 2012 Buyout Decision Could Offer 80% Upside [View article]
    I'm pleased to say that my article has sparked some interest in this merger opportunity. On Fast Money this evening, Sachin Shah a special situations and merger arbitrage strategist at Tullett Prebon mentioned he likes Jaguar Mining. JAG up 6% after hours.

    http://bit.ly/HdqR0w
    Mar 26 08:34 PM | 1 Like Like |Link to Comment
  • 4 Oil & Gas Stocks Pumping Out Big Profits With Strong Mutual Fund Interest [View article]
    We are currently in an environment that is extremely pessimistic about any company that has anything to do with dry gas not to mention hydraulic fracturing. Gas prices are likely to remain low for the foreseeable future and environmentalists will never let their concerns about fracking subside so I expect the pessimism to last for a while. But, the discounted valuations of all oil and gas service companies cannot be ignored. I believe that this sector is the most appealing value and growth story for the next decade despite low dry gas prices. Fracking is here to stay because it creates jobs and more importantly creates large tax revenues. Throughout time environmentalists complain about one thing or another when it comes to energy companies but fossil fuel extraction continues. Not too long ago diesel fuel was used in fracturing operations which is now replaced with water. Many don’t know this fact. Density is what is important when fracking and I stress people to not invest in companies that use Liquefied Petroleum Gas in fracking despite their claims of success.

    My favorite Energy Service investments in order of most upside potential are: C and J Energy Services (CJES), RPC Inc (RES), and Halliburton (http://bit.ly/y3xq5A).

    I select investments based upon fundamentals with a long horizon and manage a focus portfolio. I am not a trader and do not attempt to speculate. I identify undervalued companies selling at a discount to my calculated intrinsic value and hold until they reach my intrinsic price.
    Mar 15 12:06 AM | 1 Like Like |Link to Comment
  • Don't Believe Us? Test The Teas Yourself [View article]
    Great research. Risk and reward trade off is exceptional on this short opportunity. Starbucks should side with protecting their image and seek a different vehicle for tea expansion.
    Nov 28 11:26 AM | Likes Like |Link to Comment
  • Jaguar Mining: A Value Trap To Avoid [View article]
    We don't have a short position. The point of the article was to highlight that in the past management had continued to mislead and misguide investors on the potential of the company. We stress that jaguar does have assets, however, that it would be wise in our opinion to wait and see if this management team can deliver.

    Hermanne
    We know a little about mining and investing. We bought Medusa Mining at $3.97 and sold at or around $8.00. We have a large position in a low cost high growth silver producer that already has given us 60% upside so far.
    Sep 11 12:36 AM | Likes Like |Link to Comment
COMMENTS STATS
34 Comments
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