Adding to Core Laboratories (CLB)

CLB is an interesting stock. Except for the waterfall selling we had last Thursday midday, it has held its 50 day moving average, around $102, very well. However, it is not really participating in the rallying.

While not a cheap stock, I love the secular play and am adding a bit here.

EPS est 07 $4.80
EPS est 08 $6.00
25% growth on the bottom line with 15% growth on the top line ... you have to love companies that can expand earnings faster than revenue.

Looking at the 2008 trend in EPS you have to love the upward revisions:
90 days ago $5.55
60 days ago $5.61
30 days ago $5.74
7 days ago $5.98
(notice a trend?) This is analysts totally undershooting CLB's growth and needing to catch up.

At $103 the stock trades at 21.5x 2007 estimates - for a long term 25% grower that's a bargain. While CLB of course is affected by a drop in oil prices and seems to trade in line with them to some degree, it's services will be needed if crude is $80, $60, or $40.

From the company's website:

Core Laboratories is a leading provider of proprietary and patented reservoir description, production enhancement and reservoir management services for the global petroleum industry.

These services enable the Company's clients to optimize reservoir performance and maximize hydrocarbon recovery from their producing fields.

The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. The Company provides its services to the world's major, national and independent oil companies.

To understand why their services are so in need, I recommend readers read through the website - here is a great start.

No position