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Strategies & Market Trends : Value Investing

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To: Sergio H who wrote (45669)	11/27/2011 1:10:28 PM
From: E_K_S	Read Replies (1) of 78526

Hi Sergio - US Ecology, Inc. (ECOL) Flotek Industries Inc. (FTK) A brief review of the ECOL's Web Site disclosed that their agreement to purchase Waste Treatment and Storage Facility in 2/11/2011 (located in California) expired and there were no provisions to extend the agreement. There was nothing mentioned in their 2010 annual report regarding any water treatment permitting, facility or services. It just may be too early in the fracking development for such a specialized service. Flotek Industries Inc. (FTK) is one of the emerging leaders in the business. Forward PE around 11 but tons of debt. The larger companies like Halliburton Company (HAL) have subsidiary divisions that provide these well build out services. There may not be a "pure" value play in this area but you might also look at Seadrill Limited Ordinary Share(NYSE: SDRL ) which owns 31% of ARCHER LTD (ARHVF.PK). Archer bought Great White Energy Services which is another well service company that operates in the Eagle Ford shale region; Message 27609503 From the link:"...Fredriksen expands his empire into well drilling and services through Archer and the acquisition of Great White Energy Services. Great White Energy Svs looks like a "pure play" for U.S. energy shale drilling in the Eagle Ford region. Today's buy by Seadrill (aka Fredriksen) gives them a 39.81% interest in Archer Ltd. The buy was done as a private placement by Seadrill and Archer Ltd...." ================================================== The other area that looks promising is the capture and condensing of NG that is currently "flared" in the shale fields. This was discussed on Big Dog's Boom Boom Room thread Message 27788652 The two opportunities are (1) capturing the NG and converting the discharge into electricity on site and/or (2) condensing the NG into CNG or NGL and storing the fuel on a mobile truck on site that is later delivered to a gathering hub or NG distribution station. BloomEnergy comes to mind for a distributed NG to Electricity conversion module. ( bloomenergy.com ) They use fuel cell technology that can be contained in a storage size container that produces electricity from NG. These units are now being used to generate electricity from NG for corporate locations like Yahoo and Google. Why not in the shale fields of North Dakota that uses NG that would otherwise be "flared"? I just do not see any pure value play unless an established company (which could be a value buy) has a subsidiary business that exploits one of more of these opportunities in the shale fields (ie. fracking & water treatment, gleaning NG that is flared). As a speculation FTK looks interesting so I will add it to my watch list. EKS

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