Comment
0
Tweet
0
Print
RSS Feeds

Should Investors Load Up on This Cash Generating Machine?

Friday - 4/19/2013, 2:41am  ET

In this video, Joel South and Taylor Muckerman discuss Core Laboratories earnings and prospects. The company reported another record quarterly earnings, at $1.22 per share. Consecutive record quarters are one reason the stock is up 15% year to date. The future looks good, too. Core Labs provides reservoir description, production enhancement, and reservoir management services to oil companies. As oil becomes increasingly expensive to produce, Core Labs' services become increasingly important. For investors, Core Labs converts roughly one quarter of its revenues into free cash. The company also sells at a premium, 30 times earnings. However, given the growth prospects, this may not be as expensive as the number might suggest. Big Oil uses Core Labs, both for onshore and offshore assets, and this should keep Core Labs generating record quarterly earnings. 

There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations, and poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report, "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.