3SOF

I really like what I'm hearing about this stock.
Boots & Coots is a well managed company that is solid financially.
It sounds like they may have finally seen the future of their business and have begun to be proactive versus reactive which was apparently their historical posture. If nothing else I like it as an acquisition prospect for a larger company. They are big enough and growing enough to be a threat.
Their forward contracts continue to expand...
Very nice opportunity on this secondary - solid business and fundamentals going forward.

Boots and Coots: Going to blazes...

In a slow burn for the past few years, Boots and Coots International Well Control Inc. (AMEX:WEL) is ready for rapid oxidation. Give it air: the oilfield services company is set for a big 2008, looking to fire up profits in a volatile industry.

Boots and Coots traces its history to Red Adair, legendary oil well firefighter who tamed flames in Kuwait in 1991 at age 75. Before that, he was the inspiration for John Wayne in the 1968 movie "Hellfighters." From the Red Adair Company came his posse leaders Boots Hansen and Coots Matthews, who formed Boots and Coots in 1978. 

With a reputation as a premier critical emergency responder, the company answered its loudest alarm in early 2003, when speculators bet Iraq would ignite its oil wells in response to the U.S. invasion. Boots & Coots handled some blowouts in the southern Iraqi oilfields, and shares spiked to $8 from less than $2 — ever so briefly — and fell back to flounce around near $2 ever since.

As the Iraq bell clanked, Boots and Coots listened. The company no longer handles only 911 calls, but is now the global number to dial for full-service help. It has built a well-intervention business to smooth the jagged revenues from its critical response operations. It provides pressure control and other services to onshore and offshore oil and gas companies in North America, South America, North Africa, West Africa and the Middle East.

By the end of 2007, the Houston, Texas-based company's well-intervention revenues were $92 million, and emergency response revenues $13.3 million, bringing the total to $105.3 million. What a reversal from 2005, when revenues for response were $15.7 million and intervention $13.9 million, for a total of $29.5 million. Revenues were $97 million in 2006. 

"We were anticipating a dramatic rise in both the top line and bottom line for 2007 driven by higher activity/utilization and improved pricing, but WEL far surpassed our expectations," Neal Dingmann, an analyst at Dahlman Rose and Co., wrote in mid-March.

"Management's focus on growing the well-intervention segment has paid off," he said, adding that Boots and Coots' strong brand name should lend itself to its expanding services, such as the Safeguard business, which is its fastest growing business. The overall response business also should continue to boost the bottom line. Dingmann carries a "buy" rating with a target of $2.50 per share.

Safeguard provides maintenance, risk assessment, training and engineering services; in 2005, Safeguard services were introduced in India and last year the program entered Libya, Dubai and the Caspian Sea, and expanded in Algeria.

Like cowboys around a campfire, Boots and Coots is just warming up. For 2008, analysts expect earnings per share at $0.23, doubling the $0.11 of a year ago. Revenues are forecast at $147 million, up 40%. The company is getting its giddy-up going early: it sees first-quarter earnings at $0.06 to $0.07, compared with $0.01 in the same quarter last year. First-quarter results are expected May 5. 

Shares closed today at $2.10 each, putting the company at a P/E ratio near 12, based on 2008 expectations. The stock has traded between $1.11 and $2.79 over the last 52 weeks.   

Morgan Keegan analyst Michael Drickamer cited continued international expansion as a catalyst, including into North Africa, where a joint venture in Algeria may present opportunities in Libya. There also are well-intervention opportunities to enhance production, such as workover and snubbing operations in the Middle East.

Growth also will come as the rig-assist and rental-tool business expands into the Rockies and mid-continent, and redeployment of underutilized assets in the United States Gulf move into more profitable regions such as onshore U.S. areas and Algeria, according to Drickamer.

Drickamer carries an "outperform" rating on Boots and Coots, and also has a $2.50-per-share price target. He said that in "2007 growth initiatives positioned (the) company for significant 2008 expansion ... international exposure (is) a key benefit to investors."

Big fire-putter-outer, but still a little guy in a very intense environment. Boots and Coots has market capitalization of just $139 million, far smaller than its many competitors, including the likes of $36-billion Halliburton Co. (NYSE:HAL). Although near record highs, oil prices can be capricious. Boots and Coots also is susceptible to other risks of the range: 37% of its business comes from just two customers and it gets 76% of its revenue from outside of the United States.

International business, expected to expand in 2008, exposes the company to such risks as foreign exchange, political and economic stability, trade restrictions that may be imposed by the United States, and more. Venezuela accounted for 19% of revenue in 2007 and Algeria 20%.

Aside from the risks, balance sheet numbers are moving in the right direction. Boots and Coots had $6.5 million cash on hand at the end of 2007, up from $5 million the prior year. Working capital was $34.7 million, up from $25.5 million. And debt to total capitalization was 26.7%, well in line with the industry.

Bouncing off the 13-day MA...trend is great !
Projected EPS of $.26 in 2008
Boots Coots is extremely cheap. WEL trades at a 2008 P/E of 6.41, which is under the industry average of 10.9. Its price-to-book is 1.57. The company has a tremendous five year average return on equity of 41.04%.



52wk Range: 1.11 - 2.29
Volume: 2,156,438
Avg Vol (3m): 633,908
Market Cap: 178.48M
P/E (ttm): 14.16
EPS (ttm): 0.17

Technicals
Most Actives
Percentage Gainer

Last Price Quote is:
9.67%above 13-day MA
18.69%above 50-day MA
RS Rating: 96 

Fundamentals
Key Data:
Market Cap (M): $30.91 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 08/11/2008
Last Analyst Rating: Outperform

Press Release Source: Boots & Coots International Well Control, Inc.


Boots & Coots Appoints Dee Edwards as Chief Operating Officer
Monday June 2, 10:00 am ET


HOUSTON--(BUSINESS WIRE)--Boots & Coots International Well Control, Inc. (Amex:WEL - News) today announced that Dewitt Edwards has been appointed Chief Operating Officer by the Board of Directors. The title of COO recognizes Dee's role in successfully leading the company's expansion and integration efforts.


"Since joining Boots and Coots in 1998, Dee has made a significant contribution to the company and his new title merely acknowledges his existing responsibilities, which include the delivery of our services and the development and geographic management of our businesses," said Jerry Winchester, president and chief executive officer. "He has led a great management team that has carried Boots & Coots from a single service response provider with three locations to a multi-service pressure control provider with 11 locations around the world."

"Reinventing our strategy over the last several years has been one of the most challenging and rewarding times in my career," said Dee. "We have some of the best employees in the industry who have helped position Boots & Coots as a global leader in pressure control. I'm proud to be a part of this group and excited for what the future holds for this company."

Dee has served various capacities for Boots & Coots since September of 1998, the most recent as Executive Vice President since June 30, 2006. Before joining Boots & Coots, Dee was employed by Halliburton Energy Services for 19 years where he served in positions of increasing authority, including Mid-Continent area manager and North America resource manager.

About Boots & Coots

Boots & Coots International Well Control, Inc., Houston, Texas, provides a suite of integrated pressure control services to onshore and offshore oil and gas exploration companies around the world. The Well Intervention segment consists of services that are designed to enhance production for oil and gas operators and reduce the number and severity of critical well events such as well fires, blowouts or other losses of control at the well. This segment includes services performed by hydraulic workover and snubbing units and the rental of pressure control tools that are used to enhance production at the wells. The scope of these services also includes prevention services such as training, contingency planning, well plan reviews, audits, inspection services and engineering services offered through our Safeguard risk management programs. The Response segment consists of personnel, equipment and services provided during an emergency response such as a critical well event or a hazardous material response.



Contact:
Boots & Coots International Well Control, Inc., Houston
Investor Contact:
Jennifer Tweeton, 281-931-8884
[email protected]

--------------------------------------------------------------------------------
Source: Boots & Coots International Well Control, Inc.

BreakOut.......
Profits are growing nicely.Strong earnings and growth.......
recent pull back just makes this stock even more attractive.
Regardless of the high price of oil, they provide a service that drillers need in any economic environment. Also a hedge against a Democratic victory in November - Iran will be burning in no time if McCain gets in, and WEL will be there to put out the fires.

A big upside reward is worth the downside risk. 

52wk Range: 1.17 - 2.55
Volume: 993,510
Avg Vol (3m): 876,536
Market Cap: 198.22M
P/E (ttm): 15.78
EPS (ttm): 0.166
Div & Yield: N/A (N/A)

Technicals
Percentage Gainer

Last Price Quote is:
14.43%above 13-day MA
17.81%above 50-day MA
RS Rating: 94 

Fundamentals
Earnings Expected on Aug 4

Key Data:
Market Cap (M): $30.91 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 08/04/2008
Last Analyst Rating: Outperform

Profits are growing nicely.
The stock continues to have strong support at the 13-day MA.
I believe Boot & Coots continues to be severely undervalued sporting a trailing P/E of 14
With technicals and fundamentals continuing to look solid.
Given the company's 25% expected EPS growth (analysts are expecting .24 in EPS for 2008 and .30 for 2009) and 15% revenue growth we expect the market to reward WEL with an eventual 15-20 forward P/E which would put the stock at $4.50-$6.00 per share.
Setting a near term target of +$4 on the stock with an ultimate move to the $6 level over time.

52wk Range: 1.17 - 2.77
Volume: 1,671,199
Avg Vol (3m): 896,283
Market Cap: 205.91M
P/E (ttm): 11.30
EPS (ttm): 0.24
Div & Yield: N/A (N/A)

Technicals
Percentage Gainer

Last Price Quote is:
9.44%above 13-day MA
16.37%above 50-day MA
RS Rating: 93 

Fundamentals
Key Data:
Market Cap (M): $30.91 
P/E Ratio: NA 
PEG Ratio: N/A 
Next Earnings: 11/10/2008
Last Analyst Rating: Outperform

Let's see what goes on after this dip...

has been on a roll lately... 
Big Volume Day!!!