Add To Boots & Coots International Well Control (WEL) As Stock Set To Go Parabolic...

We have added to our WEL position here in the $2.40s as we believe the stock is setting up to go parabolic in the near future. For those new to WEL please revisit our profile on the company in our April 17th blog post. The stock continues to have strong support at the 10 day EMA and up days continue to be traded on much higher volume than down days which signals institutions are accumulating shares. With Oil and natural gas prices now breaching their all time highs (as we predicted yesterday) the spotlight continues to shine on oil infrastructure plays and we believe Boot & Coots continues to be severely undervalued sporting a trailing P/E of 14, a forward P/E of 8 and a mere 1 X next years sales. 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. With technicals and fundamentals continuing to look solid, momentum in spot Oil and natural gas prices continuing to pick up, and risk of war with Iran continuing to loom in the background we are expecting the market to take notice of Boots & Coots' extreme undervaluation in the near future leading to a parabolic move in the stock triggered by a major double top breakout of the $2.99 high set in April 2007. We are setting a near term target of +$4 on the stock with an ultimate move to the $6 level over time.