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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (46239)	1/19/2012 1:38:56 PM
From: E_K_S	Read Replies (1) \| Respond to of 78525

Hi Clownbuck - CJES service contracts cover about 60% oil and 40% NG (it may even be less NG). I was surprised to see this mix as I thought it was close to 100% NG. What is interesting from Sheth's earlier post was the tangible value of the Rigs built and the exposure CJES has when a contract is finished and/or a RIG is not in services. It reminds me of the Ship Tanker business where the industry is really cyclical. They make loads of money when day rates are high and lose money when they over build their fleets and day rates crash. There has been a lot of discussion that CJES is an acquisition target by A HAL or SLB but as both of you stated, barriers to entry is small so it is unlikely unless the company could be had at a deep discount. My position is small and I do see this as a several month play not years. I was planning on doing a few month's of covered calls as the premiums are quite large. I am not too concerned regarding the lock up period expiring as many of those shares were purchased at a much higher price and most who wanted to sell did so when the first round of shares (over 75%) were sold. I will be watching the earnings for the large Oil Service companies (ie HAL:1/23 & SLB:1/20). Positive results could move the smaller "niche" players like CJES. EKS