ORLANDO, Fla., Dec. 27, 2006 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc. announced today that it has issued a research update on Boots & Coots International Well Control Inc. (AMEX:WEL).
Lisa Springer, MBA, CFA, RedChip Research Analyst, wrote in the report:
"During the September quarter conference call, management increased its guidance for 2006 revenues to $71 million. The Company had originally estimated revenues in a $60 million range, then increased guidance to revenues ranging between $65 million to $67 million last month. Based on the Company's current market capitalization of $116 million, Boots & Coots shares are trading at only 1.6 times projected sales. The average price/sales multiple for the oil well services industry is currently around 3.5 times sales. We believe Boots & Coots shares are significantly undervalued at current levels and continue to rate these shares a Buy with a $3.00 near-term price target. We further believe the Company is poised for significant near-term revenue and earnings growth as a result of its expanded services and cross-selling opportunities, a favorable oil well drilling environment, and rising demand for its Wellsure(r) and Safeguard programs."
To receive a complimentary copy of the RedChip Independent research update for WEL, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestWEL_q3_2006s.
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RedChip Independent Research Disclosure
The analysts contributing to this report do not hold any shares of WEL. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. WEL is not a client of RedChip Companies, or any of its affiliates.