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Re: OakesCS post# 8442

Friday, 05/16/2014 7:09:24 PM

Friday, May 16, 2014 7:09:24 PM

Post# of 29408
A bullish take on CLB’s recent sell-off:

http://www.fool.com/investing/general/2014/05/15/what-in-the-world-just-happened-to-core-laboratori.aspx

Management will probably need to adjust to the concept that these first shale plays are beginning to mature, and that exploration and appraisal will be less needed. Thankfully, Core Labs has a variety of geographies and revenue sources, including, particularly, deepwater. In the long run there should be little doubt in Core Labs' ability to adapt to the needs of its customers and maintain a competitive advantage through its patented technologies.

…Don't be too worried about Core Labs' earnings growth. Over time, the service intensity of oil extraction has been growing, and Core Labs is a greater beneficiary of that trend than anyone else is. Management can develop more heavily in other areas if development of the older North American shale plays levels off. There are some very powerful, secular forces at work that are in favor of Core Labs.

I’m inclined to agree, but I’m not quite as certain of CLB’s growth trajectory as the author of this write-up.

p.s. CLB seems to be one of the few stocks for which TMF writes thoughtful pieces.

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the foremost piece of B.S. ever promulgated
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