You're absolutely right. What was encouraging to me was the fact that the recent condo/land acquisition is right in PA's core competency area, just like the Best Jets acquisition was in RB's.
I know that PBLS has been all over the map in the past 2 years, from a focus on construction, sand and gravel, to a focus on oil and natural gas, to a focus on jets/jet fuel distribution. I know that many have placed much emphasis on "hitting the big one" with oil for PBLS. To me, that would be awesome if they did. However, I am quite satisfied in seeing Phoenix continue to grow in such a way that growth is founded on more stable business activities. Selling jets in an expanding market, mining the pit, rebuilding the Gulf Coast area are all more wise directions for PBLS at this stage of their business life cycle. Sure the Revenues might not be as impressive as Pro-gas, but I'd rather have $200 million in revenues at 10-15% margin and not being so dependent on NG price fluctuations, than $500 million in revenues at 2-3% margin and wondering what NG is going to sell for day to day.
And as far as drilling, I'm not an oil man at all and don't always understand the potential costs involved. But because of the limited liquidity that growth companies often have, I like seeing PBLS take more calculated business risks with their limited cash than the 1 and 1000 chance of spending a ton of money to drill a deep well and hitting oil.
I'd like to see them establish a nice business base and then do some serious drilling in 1-2 years.
Just an opinion.
Ren
"Experience: that most brutal of teachers. But you learn, my God do you learn." C.S. Lewis
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