Value Microcaps Motherboard

[Bobwins]

BSIC.ob Most of us know that energy stocks have taken off and many are no longer cheap! What a shock! In my never ending search for cheap, I have found Bsic.ob. Hweb reminded me about it. They made .024eps diluted for q3 and I bought some today for .70. That's a forward p/e of about 7. However the company is more aggressively drilling to increase production and the eps should improve for q4 to .03, at least.

Here is the statement from the 11/15/04 earnings announcement:

Commenting on this disclosure, Ray Singleton, President of Basic, said, "We are pleased to report another profitable quarter with a 13 percent increase in net income over our first quarter of 2004. Contributing to these results was a 37 percent increase in net income over our first quarter from our core U.S. operations. We are excited to announce that, in addition to drilling a successful offset to the Lynn #1, both our Lynn #1 well and Wharton County well are now on production. While some improvement to this quarter's results was realized by these efforts, the full impact of these projects will not be obvious until the results of the current third quarter ending 12/31/04 are finalized. We are particularly excited to announce that we are finalizing our participation in our first horizontal Bakken well in the heart of the developing Bakken horizontal play in Montana and our participation in a second '3-D Bright Spot' prospect along the Texas gulf coast. While subject to change, both of these wells are currently scheduled to be drilling by the end on this quarter. In our continued effort to build on this type of growth, the Company continues to pursue opportunities on its existing Williston basin acreage and initiate new projects in both the Williston basin and Texas."

The company has an unused line of credit for 1 Million, no debt outstanding although they do have an asset retirement obligation for almost 900K, positive equity of 4.6 million and several drilling projects in various stages of completion. They are not hedged so the company will definitely get the full benefits of the higher prices in the qtr just ended.

Bsic.ob doesn't trade that actively so I don't think many investors are aware of the positive surprise that is coming. Results should be published around 2/15/05 since they are on a fye of 3/31. Bobwins