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

To: E_K_S who wrote (46759)	3/1/2012 9:03:57 AM
From: Labrador	Respond to of 78523

Thank you for your thoughts. I'm planning to hold my CJES. It trades up after earnings, but then drops over the next month. If I see it again at $18 or so, I'll probably buy some more. Maybe I need to be smarter (as you were) to dump the shares after next month's earnings report. I'm expecting good things with CJES over this calendar year. I will look at GRH, as I'm unfamiliar with the company. best to you

To: E_K_S who wrote (46759)	3/1/2012 2:29:33 PM
From: Labrador	Respond to of 78523

From CJES 2011 10-K. Hopefully this is helpful. *Delivery and Deployment of Fleet 6. In December 2011, we took delivery of the first part of our sixth hydraulic fracturing fleet, which we call Fleet 6A, and deployed it immediately for operations in the Permian Basin pursuant to a two-year term contract on a full month take-or-pay basis. Fleet 6A, which consists of 16,000 horsepower, has been continuously utilized for vertical completions since deployment. Originally Fleet 6B, making up the other part of Fleet 6, was to be a 16,000 horsepower vertical fleet, but, at our customer’s request, was increased to 32,000 horsepower with the necessary ancillary equipment and deployed effective February 13, 2012 for horizontal completions in the Permian Basin. New Equipment Purchases.* We have ordered three new hydraulic fracturing fleets, Fleets 7, 8 and 9. We anticipate taking delivery of Fleet 7 in April 2012 and deploying it soon thereafter for work in the Permian Basin. Fleet 8 is anticipated for delivery in the third quarter of 2012 but may be accelerated based on market conditions. Due to the robust nature of our internal cash flow and the confidence we have in our ability to expand our customer base, we have ordered Fleet 9, which we expect to receive and deploy by the end of the fourth quarter of 2012. We are actively seeking to secure multi-year take-or-pay contracts for Fleets 7, 8 and 9; although, we believe that the equipment can attract solid demand in the spot market if long-term contracts are not secured. During 2011, we increased our coiled tubing fleet and the associated ancillary equipment by approximately 40%, expanding from a fleet of 13 units at the beginning of the year to a fleet of 18 units by the end of the year. We have ordered six new coiled tubing units together with the related ancillary equipment, which we expect to deploy in 2012 in new basins. Historically, we have successfully leveraged our existing relationships with coiled tubing customers to expand our fracturing business and we hope to do the same as we expand our coiled tubing operations into new basins in 2012.

To: E_K_S who wrote (46759)

3/25/2012 4:51:52 PM

From: Sergio H

Respond to of 78523

GHS/HEK

I remember looking at HEK with you and Ditch and Nic a few months ago. I passed on HEK because they appeared to me to lack focus. Their recent acquisition of an oil recycler co. indicates that the lack of focus continues to be an issue.

Maybe worth waiting for their next earnings report before buying shares. GHS appears to be focused but may need money. They keep getting extensions on their AMEX listing due to....

(a) Financial Condition and /or Operating Results—The Exchange will normally consider suspending dealings in, or removing from the list, securities of an issuer which:

(iv) has sustained losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of the Exchange, as to whether such issuer will be able to continue operations

and

/or meet its obligations as they mature.

To: E_K_S who wrote (46759)	4/20/2012 8:05:51 PM
From: E_K_S	1 Recommendation Respond to of 78523

Exxon Mobil Corporation Common (NYSE: XOM) - peeled off 27% of position (Market price exceeds GN) C&J Energy Services, Inc. Commo (NYSE: CJES) - started a "value" swing trade position @ $16.45/share. goo.gl I noticed that XOM is one of my only integrated oils where its GN ($78.55) is less than the current market price ($85.30). The stock is 8% overvalued according to this metric. Peeled off 27% of my shares (purchased 7/2010 @ $58.02) and plan to deploy the funds into better undervalued oil propositions. HES tops my buy list below $54/share. The GN for HES is $85.16 (I used 2012 EPS avg est. $6.76 w/ a TBV= $47.68). The current market price for HES is $55.07 but I think I can buy it cheaper in the coming weeks and/or month. After blowout earnings by HAL and SLB both stating that their North American operations exceeded their expectations, I decided to start a "value" swing trade position in CJES. CJES provides hydraulic fracturing, coiled tubing, and pressure pumping services to oil and natural gas exploration and production companies. Halliburton Profit Rises as U.S. Oil Fracking Demand Grows By David Wethe on April 18, 2012 businessweek.com Although I am generally negative now on the market in general (looking for at least a 10% correction... or more to $SPX 1340; Sell in May & Go Away), I believe there are pockets of value that can be traded with a low risk & high reward strategy. Rather than trying to find overvalued short plays, I am utilizing a new technique (for me) establishing what I call *"value" swing trade positions* that can be put on during a correcting/down overall market. I believe CJES is one of these plays. CJES has a GN value of $22.98 (TBV=$5.87 & 2012 EPS est=$4.00). My purchase price of $16.45 provides me a buy in point that is 40% below what I consider to be a fair value for the company (as measured by the GN). Private equity firm Greenwich ( houston.citybizlist.com ), CT-based General Atlantic LLC filed an SEC Form SC 13D/A indicating that it now holds 4.2 million 8.1% of outstanding shares, an increase from the 3.4 million shares. They had been acquiring stock in the open market from March 20 ($18.00) through April 9 ($17.00). I estimate that the average price they paid during this period was around $17.50/share. My strategy is to swing trade the position to generate a 30 day gain of 20% by (1) selling May $17.50 covered calls for $1.50 and/or (2) take a quick $1.00 gain on 1/3 of my shares at $17.50/share and selling the rest in increments up to $19.75/share and/or (3) some combination of both. The key for me is this is not a long term buy and hold. I believe with the new 8.1% stock owner in at $17.50/share, my downside risk is small and on any rally, the stock could easily move back to their average acquisition cost of $17.50/share. There has been rumors to take the company private especially with cheap money trying to find a home in very profitable businesses. My defensive sell target of $19.75/share should leave enough value in the shares even in any sustained general market sell off (worst case scenario) that I can exit today's buy with a profit. EKS