TCMS with 50% increase in workforce = huge increase in revenues down the pipe with the new yards in place.
It's nice to see some discussion on what I believe will be one of the primiere growth stories in the Oil sector in the coming year; TCMS.
I will not pretend to be an expert in the oil sector, I'm not. I can not lend any industry expertise in my analysis of these companies, but what I can do is give you the perspective of an outsider looking in. This perspective will hopefully be of some value; as I believe the next major move up in shareprice will come from the influx of new money coming from sector rotation, it's coming soon and in a big way.
With a major Dow correction or move in Bonds or interest rates; the ''new paradigm'' investor will NOT run to cash with either their 401K or personal investment funds, they will ''rotate'' into undervalued sectors. The Oil Patch stands to greatly benefit from this coming rotation. If by chance this ''rotation'' simultaneously occurs with a rise in crude prices; then my ''timing model'' will be validated. It's beginning to build, as some Analytical services are now rating this sector as their ''top buy''. The mention of oil drillers and service stocks are at the forefront of all print and electronic media discussion of late; this is a dramatic change from just 6 or 8 weeks ago where there was hardly a mention.
Obviously companies like SLB,HAL,BHI and drillers like RIG, DO, and GLM will be the first benefactors of sector rotation as they are the big cap flagship names. I anticipate they will be a good short term play as they will initially benefit the most from this move. However, when institutions and serious investors see the dynamic small cap growth companies and the opportunities they present in this sector; I believe these small/micro cap companies will explode from an influx of buying. These types of growth companies offer IMO, a more tangible, measureable and predictable future than a corresponding investment in a micro-cap telecomm, cable or internet company. For someone who sold Big cap Financial and Tech stocks as well as a few small caps; I'm like a "Bull in a China Shop" or a "Kid in a Candy store" when I see a small company like Halter Marine / HLX that has an order backlog that exceeded their prior years sales, has a projected earnings growth of 50%, starts a new joint venture with one of Chinas largest shipyards (@ the bottom of the Asian Contagion crisis -hopefully) and it's selling for 1/2 or less of its prior 52 week high ?!? Or large caps like TDW, debt free, tons of cash, consistant earnings with 22% margins, selling for a PE under 10, near 24 month lows, while growing earnings and sales ?!? How about OMNI; It makes the top of IBD's - ''Best Ups'' list for highest increase in earnings1100% along with a 238% increase in sales, has a strong ''niche'' in the market, growing @ 50% ; would I rather buy (the next FGII) this company or some internet or global satellite telecomm stock ? - I know what installing pipeline or providing seismic survey service is; but I sure as hell don't know if telecomm satellites over China or oldie disco CD's sold over the internet will work... I know ''oil'' works. There are more oppportunities in the Oil Patch than any other sector in the market.
I will try to listen and learn. I'm really enjoying the analysis of those directly involved in the Oil patch. Good Luck and do I ever wish I had been around in Jan. to mid-March; Kudo's to those who had the foresight to buy into the decline in the face of falling crude prices .... took a lot of guts. |
