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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (10415)	8/5/2005 1:45:23 PM
From: ACAN	Read Replies (2) \| Respond to of 23958

Ray; ALY into energy, following from Crossy's thread re: Allis Chalmers Energy (Amex : ALY) $9.90 Energy Services Homepage: alchenergy.com The homepage is rather insightful and provides a downloadable Fact Sheet and Company presentation for the curious investor. Profile: finance.yahoo.com around 15m shares outstanding (including the recent placement of 1.5m new shares) Marketcap around $150m USD, debt level around $40m, financial ratios are more than adequate for a fast-growing provider of an industry in the mid of a boom phase finance.yahoo.com This profitable, fast-growing provider of oilfield related services has managed to grow its top line by 60% during the last couple of years each (CAGR%). Their strategic goal is to grow faster than the rig count and to be the “first call” for oilfield operators in the niche services they offer. They are targeting activities in a prudent way – so far providing them gross margins of around 30%. Another fact worth mentioning is that more than 80% of their revenue are related to natural gas exploration, production and workovers. Any shortage in natural gas should directly benefit them. The company guided for a revenue level of around $90-100m USD for the current year (FY2005) and for EPS of 0.20-0.30 – all organically, encompassing the current configuration of activities, not including any further acquisitions. Current valuation versus guidance puts ALY at a Price/Sales ratio of 1.5 versus a figure typical for the industry between 3 and 6. Whereas the rest of the market grows the top line by around 20%, ALY managed to expand 3 times as much historically – this alone should account for a materially higher multiple to be attainable ultimately. IMHO this could be a fiver-bagger or more over the mid term best rgrds CROSSY Business Description: Allis-Chalmers Energy, Inc. provides oilfield services and equipment to the oil and gas exploration and development companies principally in Texas, Louisiana, New Mexico, Colorado, and Oklahoma; offshore in the United States Gulf of Mexico; and offshore and onshore in Mexico. It operates through four segments: Casing and Tubing Services, Directional Drilling Services, Compressed Air Drilling, and Other Services. The Casing and Tubing Services segment offers installation casing and tubing, change out drill pipe, and retrieve production tubing services for onshore and offshore drilling, and workover operations. The Directional Drilling Services segment provides directional, horizontal, and ‘measure while drilling’ services to the oil and gas companies operating onshore and offshore in Texas, Louisiana, and Oklahoma. The Compressed Air Drilling segment offers compressed air, and related products and services for air drilling, workover, completion, and transmission segments of the oil, gas, and geothermal industries. The Other Services segment provides oilfield rental tools, principally renting spiral drill pipe and other specialty tools to oil and gas operators. It also provides downhole production services. Allis-Chalmers Energy is based in Houston, Texas. Allis-Chalmers Energy, Inc. acquired Capcoil Tubing Services, Inc., that provides coil tubing services, in May 2005. Financial Performance: REVENUE Quarters 2003 2004 2005 MAR 6,999 9,661 19,334 JUN 14,339 11,422 SEP 8,089 11,888 DEC 10,296 14,755 Totals 39,723 47,726 19,334 Note: Units in Thousands of U.S. Dollars EARNINGS PER SHARE Quarters 2003 2004 2005 MAR -0.086 0.050 0.090 JUN -0.194 0.037 SEP 0.352 0.036 DEC 0.287 -0.045 Totals 0.359 0.078 0.090 Note: Units in U.S. Dollars