*AV*--While emptying out the infamous Hotmail folders of saved "weird" stocks that rubbed me the wrong way, I decided to share this little pearl. It was actually sent out by one of the more well known forums that tends to get slightly wacky at times, if you catch my drift.
Date: Sun, 29 Mar 1998 21:51:09 -0500
Subject: ** / ** Pick, Part 2: Westrend Natural Gas
The Upside
The important factor in understanding the upside opportunity in this company goes back to my earlier comments on the generally low tech nature of the energy industry. In that lie the seeds of Westrend's upside, because it is on the fast track to building a group of complementary high tech businesses to capture market share. It is for that reason that, instead of relying on an old design - no matter how good - the first thing which Mark Roberts and Oscar Taylor did when restarting Taylor Rigs was to do a redesign, so that their rigs now boast a number of advancements which none of the competition offers.
Pushing against the tech envelope was also why Westrend bought Alamo Logging Services, a "wire line" company which uses advanced technology to help producers analyze production and monitor performance at all stages during the life of a well, with a focus on those involving deep horizontal drilling. That's good, because while the last oil boom was driven by taxes, this one is all about profits - with horizontal drilling at the heart of it.
But here's the important point. Taylor Rigs and Alamo Logging Services are just the first two acquisitions in Mark Roberts' quest to build the Microsoft of the energy services business. His management approach is simple: Find great companies run by great people, and provide the financial support needed to develop innovative products and services. then step back and let proven management take the acquired companies to their full potential.
As I write, Mark Roberts is involved in negotiations with a number of top rung niche technology companies, and new acquisitions should be announced soon. As an investor, a bet on Westrend has nothing to do with the kind of overnight 10-for-1 returns which can occur when a big field is discovered. Rather, it is a more conservative bet that Westrend can continue to successfully pursue its mission of becoming a dominant player in the high tech side of the energy services industry. If it succeeds, then a 10-for-1 is a distinct possibility, but it won't happen overnight. On the other hand, the company has two successful divisions currently operating, providing positive cash flow which should accelerate, perhaps dramatically, over the next year.
At today's prices, Westrend, which trades under the symbol WRN.V, represents a fairly safe double on your money, after which you can take a free ride on the possibility that Mark Roberts will translate his vision into reality.
Summary of Corporate Development Strengths
Westrend Natural Gas is a diversified, growth and technology oriented oil field service and manufacturing company. Its principals and member companies have been in business for over 15 years and is now embarking on an exciting and highly profitable phase of its corporate development. The company is confident that it will continue to build on its strong customer base and service mix.
Some of the key corporate strengths are as follows:
ú A strong Board of Directors and management team with over 100 years of cumulative direct experience in the oil and gas services industry.
ú A diversified and complementary service mix that focuses on dependability and quality.
ú A diversified client base that ranges from small to large oil and gas exploration and development companies.
ú A dedication to entrepreneurial approaches to business and minimal
corporate overhead.
ú A commitment to serving the needs of the shareholder including providing for improved share liquidity and investment opportunities in the near future.
The existing corporate strengths of Westrend Natural Gas Inc. combined with the features and benefits of its array of oil and gas services, will give the company a competitive advantage over small - medium sized companies offering similar or independent services.
---------------------------------------------
Last Quarterly Report (Third Quarter) was also provided (Form 61)
which DOES NOT INCLUDE EARNINGS from Taylor Rigs. The fourth quarter including the year-end audited financial report will be out toward the end of May 1998 and the First Quarter 1998 will be out by the end of June 1998.
*******************
*******************
*******************
I find it amazing that no sooner did this come out in print over the internet, then the stock started to fall in price and hasn't stopped. The word got out, a few days passed at relatively the same price, then POOF you lose 50% of your investment. Almost as if the new buyers were paying a premium to take the shares off the hands of the author and his group of investors. Stronger hands to weaker hands.
Now may be the time to jump aboard this fantasy. It us up $0.05 today and I am sure there will be some buying of this stock such that a new group of suckers (err, investors) can be enticed into this stock when it gets pumped up to around $0.75-$0.85 through another advisory such as the one above.
Do not take this as investment advice, I just have some free time to kill as most of my areas of investment interest are languishing, falling on their swords, or just convulsing violently with the terminal case of ASIAN AIDS(Another Indescribably Disasterous Situation). Yeah for Japan!!! The bozos are now saying they will do something about the weak Yen.
As I do some folder house cleaning, it feels good to do a little Monday Morning Quaterbacking on some of the more visible nasty come ons from the first quarter of 1998. Have fun with this one and no intentional flame was meant towards anyone. After all, it COULD HAVE BEEN JUST A COINCIDENCE that the stock started to fall within days after the glowing report.
Andrew |
