Saxon Energy Services

SES-T

(A Top Pick July 10/07. Down 1%.) Oil/gas drillers. The whole group is basically coming back.

Ranks top third at 231 in his database. Looks like oil/gas service stocks are bottoming out. Not a Buy outright, but they are expected to grow earnings from $0.31 to $0.46 (48%) between 07 and 08.

An international oil/gas well drilling and service company. Service companies have been struggling because of the low price of gas. Earnings are expected to go from $.20 in his 2006 to $.42 in 2007 with another 32% growth in 2008. Ranks 22 one of 700.

Very high quality management. Unfortunately, they got caught in a downdraft in the energy services market and were not able to do all the acquisitions they were hoping for. Would prefer a lower price.

Has excellent management. Diversified their assets into North America, away from South America. Well run. There is a complete rotation in the sector with drilling being out of favour. Good hold for when it come back in favour.

Has been bouncing around a little bit because of sector rotation but with oil going back up its coming back. Excellent management team. There is a window of opportunity from 6 to 9 months for high prices to the oil service sector. There is also the potential for them to convert into a trust.

(A Top Pick Nov 17/05. Down 1%.) An oil/gas service company. Dropped with the rest of them. Still likes it. Longer term energy services play.

Some of the service sector has not been doing as well as the energy themselves. It certainly has decent upside potential, more than $10. Would prefer to be in other areas of the energy sector.

(A Top Pick Nov 17/05. Up 17%.) They hired some very key executives from Precision Drilling. This was a stunning endorsement of the company and what they are doing. Added some Canadian assets.

In the middle group in terms of quality in the energy service area. Got some new management from Precision Drilling when it trusted, It has a global diversification to its business which he isn’t in favour of as there is so much business in North America. It will go up with the group, but won’t be the leader.

An international oil services play. Quite cheap. As it expands, and as long as the oil services group hangs together, he believes this will be an outperformer.

An international drilling services company. Several key executives from the former Precision Drilling (PD-T) have loined them. This creates a very motivated management team that turns it into the next Precision. A good 2/3 year play.

Has been a little bit disappointing recently. The Venezulean government changed some rules for oil/gas producers and this kind of dragged them down. A very well run company and Venezula is not their only country of operation. Nothing happening currently in terms of acquisitions, but wouldn't wait too long as the management team is quite aggressive.

New listing as of Dec 6/04. Management has their own money in this stock. Likes this space. Have some very aggressive growth plans. Intend to own for a good 6 months to a year minimum, but would trade around positions if it decided to spike up.