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 22, 2001

BJ Services, one of the leading oil service companies, could not hold important support at $79.00. Apparently, investors are once again trying to accumulate cash by selling stocks in their portfolios that have a profit. Today's decline broke a rising trendline that BJS has been enjoying since early December. The stock will most likely have to go through the process of finding support and then consolidating. We will consider trying to add this play again after the share price stabilizes and establishes a renewed up trend.

Picked on February 6th @ $83.18
Profit/Loss -5.18 (19%) (Stopped Thursday @ $78.00)
Best Profit +0.72 ( 1%)

February 20, 2001

The PHLX Oil Service Index (OSX) maintained its ground, as this sector kept pumping away with a gain of 0.28 points to a close of 127.86. The big question remains whether our patience with this play will be rewarded. BJS is certainly within striking distance of its all-time high of $83.90. The longer-term strength in BJS can be attributed to the fact that this entire sector is looking at some of the best profits of any stock group in the market. We believe that a split announcement is justifiable based upon the current share price of BJS. In the absence of a split announcement, look for a more sustained move if BJS can trade above Friday's high of $82.25 on midday volume greater than 1 million shares. This may prove to be a good entry point. However, the MACD remains negative and this situation will have to be corrected if BJS is going to make a new high above $83.90. We continue to suggest that bounces off this price may prove to be a good entry point for quick trades.

Picked on February 6th @ $83.18
Change since picked -3.12
Stop Loss @ $78.00

February 18, 2001

Oil service stocks have been one of the strongest groups for just over a year. Strong oil prices that appear to be able to hold in the high $20's have resulted in an increase in drilling activity. BJ Services is a provider of pressure pumping and other oil field services. There is a high demand for BJ Services’ particular specialties, now that onshore and offshore rigs are running at nearly full capacity. BJ’s 2001 profits are expected to come in at over 113% of year 2000's profits of $1.45. The solid fundamentals may be fairly reflected in the share price. However, we believe there is an excellent opportunity for a new rally to occur following a split announcement. The company's last split was announced in December of 1997 when the stock was trading at $74.94. Friday saw the stock make an attempt to break from its consolidation range. Unfortunately, general selling pressure across the board late Friday knocked the stock back. Nevertheless, we are encouraged by the early rally and our suggestion to pick the stock up following the bounce off $79.00 may work out. The MACD, which resides in negative territory, continues to concern us. OBV and Money Flow are both still positive but have come down from better levels. New positions might be initiated if the stock can move above Friday's high of $82.25 on midday volume of over 1 million shares. A move below last week's low of $78.44 will most likely cause the execution of our $78.00 stop.

Picked on February 6th @ $83.18
Change since picked -3.58
Stop Loss @ $78.00