ORLANDO, Fla., April 9, 2007 (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 Senior Research Analyst, wrote in the report:
"During the year-end 2006 conference call, management indicated it anticipates sequential declines in revenues and income in the first quarter of 2007 due to delays on certain projects in the Gulf of Mexico and Venezuela. However, the Company expects growth to continue in 2007 as a result of additional Safeguard work in Libya, prevention work in Indonesia, and additional hydraulic workover/snubbing units in Qatar, Saudi Arabia, and the Congo. Boots & Coots is negotiating a large snubbing services job in the Mideast and has been approached to deploy an additional unit in 2008. The Company's Safeguard and hydraulic workover business in Algeria grew significantly in 2006 to five-year contracts worth $35 million. Boots & Coots has been approached by a major oil and gas operator to form a joint venture that would supply all of that company's hydraulic workover/snubbing service needs in Algeria.
"At $97 million, 2006 revenues significantly exceeded the $71 million guidance provided by management during the September quarter conference call. At a recent $2.62 price, Boots & Coots shares trade at only a six times multiple of price-to-EBITDA. We believe Boots & Coots shares are undervalued at current levels and continue to rate these shares a Buy with a $3.00 price target."
To receive a complimentary copy of the RedChip Independent research update for WEL, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestWEL_Q4_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.
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