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Re: 10 bagger post# 35599

Tuesday, 02/14/2006 11:58:51 AM

Tuesday, February 14, 2006 11:58:51 AM

Post# of 173788
Re: 10bagger...ALY...I agree with you that oil service stocks are being linked too closely with crude oil prices. It's not like their business drops off when oil is $65 vs $58, but the market doesn't look at it that way so much.

On ALY, I listened to their presentation last thursday. There was little new news except when the slide for casing & tubing came up-- the presenter commented that the acquisition that occurred in Sept. 2005 will TRIPLE revenue for that division (I'd bet it is for U.S. operations of that division & doesn't include Mexico). Later with a slide of EBITDA he comments that it doesn't include the earnings from the Sept. material acquisition and that $3M/year in EBITDA should be added for that. In the 2nd Q vs 3rd Q the casing & tubing division added $1.2 M in revenue. If this came from just a few weeks of the business added because of the additional equipment that was available, then 4th quarter for that division will look really good. I think this could lead to an upside in revenue overall. IMO.

I'm hoping they are more specific on details in the presentation this thursday.

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