Glenn MacNeill, P.Eng.
Builders Energy Services Trust
BET.UN-T
WEAK BUY
Mar 30, 2005
New trust that was issued at fairly high multiples. A service company that's coming off record earnings and record cash flows. Have dominating positions in several geographic areas and several industries that feed the oil/gas industry. It's going to trade at a very high beta, i.e. very volatile. Be cautious.
A conglomeration of different things that services rigs, etc. Right now we are at record capital expenditures on rigs and drilling sites. These service companies have done very well. This industry has a way of turning very quickly.
A group of companies that were put together and operate on the service side of the energy sector. Expect to see some corrections on the service side with companies switching from natural gas to oil plays.
They are essentially an energy oilfield services company. After the October 31 announcement by the government, he doesn't think their model is valid any more.