Team, Inc.: A Stock To Watch

| About: Team, Inc. (TISI)

Here's a stock I'm watching: Team, Inc. (NASDAQ:TISI). Imagine some tank cars you own (or rather, that you operate after completing a sale-leaseback with the Stanley Goldman Super Ultra Mega Securitized Hybrid Total Enhanced Global Leveraged to Teeth ABS Fund II) overturned. Your Chief Risk Intern promptly does a Google search about the contents and found that a spill would be, in his words, "unfortunate."

So, realizing that the portion of the 9% pre-fee return your lessor is offering her investors for which you are responsible is in jeopardy, you ask your intern to find someone who can help. The intern comes across Team, Inc. and calls them, quickly.

The intern will learn that tank car valves automatically seal when the tank car rotates past 45 degrees. The intern says "that's so cool!" But then he learns that the valve has to be opened under controlled circumstances by qualified individuals using specialized equipment so the contents can be disposed of safely. Team, Inc. gets hired, they dispose of the stuff and eventually everything is fine in hedge fund land.

Team, Inc. also provides emission control, energy management, concrete repair, testing and inspection , heavy bolt work and field machining, should other hedge fund owned companies ever need those services. They do it through 60 domestic and 14 foreign locations. Roughly half their customers are refineries alone. Nearly 2/3 are energy related.

A recent investor presentation is vague on how revenue breaks down geographically, and that's a big interest of mine. Near as I can tell, management thinks international growth will come largely via acquisitions in a highly fragmented industry.

I don't have a target entry price yet and I need to familiarize myself more with the financials and the competitors. As always, readers will be among the first to know if I get long.

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