For a play on the oil services industry, check out Bolt Technology (BTJ). This co. supplies drilling technology to larger cos. like Schlumberger, Nabors, etc. No debt, a ton of cash on the balance sheet, 100% eps growth rate, 30% net profit margins, 40% ROE, and experienced management. Also, there is a huge net operating loss carryforward from the late 1980's which makes Bolt a PRIME takeover candidate for a larger company. No analysts follow the company because it's too small ($50 million), but when it starts showing up on Wall Sreet radar screens, look out!
BTJ-Bolt Technology breaking out yesterday implies that as oil prices decline, seimic equipment and seimic work become more important, Bolt is the main supplier of air guns to the seimic inductry, with over 30% of sales going to SLB. 100% EPS, 30% net profit margin, 40% ROE, and great management. Over 12 milllion carry foward losses, and Capitalization of 65 million, Look out Wall Street.
Where is the overlap except with the directional drilling services. The wireline would only consist of about 20% of the market. DI, BHI, HAL, need the seismic, HAL not into chemicals ($750 million business for baker-petrolite) BHI Oiltools strong with little overlap between the others. Also SII would be ready to snatch up any spin offs of the directional drilling business. Total market cap would be about 30 billion compared to SLB of about 34 billion. Would be a monster but think its possible. Think HAL is a much better run company that BHI. A long shot but not out of the question.