ORLANDO, Fla., May 20, 2008 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., has issued a 1Q 2008 research update for Boots & Coots International Well Control, Inc. (AMEX: WEL), a global emergency response company specializing in the needs of the oil and gas industries.
Paul Rapa, MBA, RedChip Research Analyst, reported:
"With profitability increases in almost every location in its international business during the first quarter and continued improved activity levels in the Gulf of Mexico, we continue to believe that WEL is being very conservative in its estimated earnings per share for the second quarter."
"2008 will continue to be a very successful year for the Company, and at a recent price of $2.16 per share, the Company continues to be extremely undervalued. We believe oil prices driven by world demand and civil unrest will continue to increase and create unique opportunities for WEL. Additionally, the Company's domestic activity is driven by natural gas. As many companies in the United States continue to explore for natural gas, the Company's domestic operations should continue to build momentum in the second quarter," Rapa continued.
"We continue to believe that the stock is very undervalued. Based on the Company's recent first quarter results, we are maintaining our 12-month price target and rate WEL a 'Strong Buy,'" Rapa concluded.
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Disclosure:
Boots & Coots meets RedChip Companies' criteria for independent research coverage. Neither RedChip Companies nor the analyst has received any compensation from Boots & Coots or any other party for the writing and preparation of this equity research report. The analyst(s) contributing to this report do not hold any share of the subject securities. 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, neither the information nor any opinion expressed constitutes an offer, or an invitation to make or garner an offer, to buy or sell any securities or any options, futures, or other derivatives related to such securities ("related investments"). This publication was furnished on the condition that it will not form a primary basis for any investment decision. The subject security is not a client of RedChip Companies, Inc., or any of its affiliates.