BJS provides pressure pumping and other oilfield services serving the petroleum industry worldwide. BJS%s services include well stimulation, cementing, sand control and coiled tubing. For the 3 months ended 12/31/00, revenues increased 38% to $489.7M. Net income totaled $63.5M, up from $20.5M. Revenues reflect an increase in North American drilling activity. Net income also reflects continued improvements in pricing.

February 6, 2001

BJS is one of the leading oil field service companies. What’s more, this sector is gearing up for one of the busiest and most profitable periods in years. It appears that the price for a oil will be able to maintain its price around $30.00 a bbl. The share price of BJS has been soaring ever since it plowed through the major resistance provided by a double top at $76.75. This price is now the major support. The record earnings reported on January 23rd did not see a split announcement. Using history as a guide, however, we feel that the stock is a legitimate split candidate. The last recorded split occurred in 1997 when the stock was trading at $74.94, which is obviously well below today's closing price. Momentum traders may want to consider this stock if it moves above the all time high of $83.90 tomorrow. Technical indicators, such as the MACD, Money Flow and OBV all point towards a continued positive move for this stock. One word of caution, the RSI is just starting to indicate an overbought condition. If the stock does not make a new high, it may be best to give the stock a chance to pull back and consolidate before purchasing it in anticipation of the next move higher

Picked on February 6th @ $83.18
Change since picked +0.00
Stop Loss @ $76.00

February 15, 2001

BJ Services is poised to be one of the beneficiaries of the heightened oil drilling activity. When we first initiated this play, we were a little concerned that the RSI was indicating an overbought condition at that time. Now that the RSI has pulled back, BJS is looking more attractive. The consolidation trading that has occurred this week has seen BJS trading back and forth across the 10-DMA, which closed today at $80.81. If the stock can close above this moving average tomorrow, then BJS may be ready to test its recently established high of $83.90. Nevertheless, it is difficult to become too bullish on this play now that the MACD has issued a sell signal. One possible event that could spark a significant rally would be a split announcement. If a rally does not occur, we would be very cautious should the stock drop below this week's trading low of $78.44.

Picked on February 6th @ $83.18
Change since picked -2.73
Stop Loss @ $76.00

February 13, 2001

The PHLX Oil Service Index (OSX) has suffered over the past two days thanks to one of its largest components, Schlumberger (NYSE:SLB). The drop in the high profile SLB has likely given traders an excuse to shed their holdings in other oil service stocks. In Sunday's write-up we suggested that a bounce off the $80.00 support may prove to be a good entry point. Since this did not occur, some of you may be waiting to enter a position. Current technical indicators are not encouraging. The MACD issued a sell signal today. Money Flow and the OBV are also both in decline. A very aggressive trader could try and pick up the stock with another bounce off $79.00 tomorrow for a quick trade. It is possible that the MACD issued a false signal today. A quick dip to just above our stop of $76.00 may prove to be another good bounce area. With that said, we would definitely like to see a previous day's low hold before we become more confident about this play.

Picked on February 6th @ $83.18
Change since picked -3.86
Stop Loss @ $76.00

February 11, 2001

Now that technology stocks seem to be petering out, traders are once again finding smoother sailing in the oil service stocks. The PHLX Oil Service Index (OSX.X) was one of the best performing indices last year and BJS is one of the strongest stocks in this group. Earnings expectations are soaring due to the heightened drilling activity that has accompanied relatively strong oil prices. Its 2001 earnings are expected to more than double to $3.02 a share. BJS is trading at prices that have previously enticed management to announce a split. The company's last split was announced in December 1997 when the stock was trading at $74.94. Momentum traders are most likely still waiting for the stock to make a new high of $84.00 on solid volume over 2 million shares before attempting a trade. The RSI is starting to pullback after indicating an overbought condition last week. Possibly a good entry point would be if BJS bounces off the $80.00 support offered by the 10-DMA. The strongest technical indicator is the MACD, which gives us the conviction to feel that a pullback in the stock is likely to be just a healthy consolidation that will result in another move to higher ground.

Picked on February 6th @ $83.18
Change since picked -2.07
Stop Loss @ $76.00