Core Laboratories (CLB) provides reservoir description, production enhancement, and reservoir management services to the oil and gas industry worldwide. It engages in determining quality and measuring quantity of the fluids, such as natural gas, crude oil, and water and their derived products in the oil and gas fields.
The company also analyzes samples of reservoir rocks for their porosity that determines reservoir storage capacity, and for their permeability, which defines the ability of the fluids to flow through the rock. In addition, Core Laboratories produces data to describe a reservoir system, and reservoir description and production enhancement information, which is used to enhance oil and gas production. Core Laboratories N.V. was founded in 1936 and is based in Amsterdam, the Netherlands. The company has over 70 offices in more than 50 countries.
Core Laboratories is the only global provider of services that characterize the porous reservoir rock and all three reservoir fluids. Their technologies measure rock properties and the ways that reservoir fluids behave when a reservoir is being produced. For wireline and seismic data estimates to be used effectively in reservoir optimization, they must be calibrated with precisely measured petrophysical and fluid datasets such as those provided by Core Laboratories.
The company has solid fundamentals with good cash flow and a healthy return on equity. Core Laboratories recently reported record quarterly revenue of $202,500,000 for the third quarter of 2008, an increase of 19 percent over year-earlier quarter totals. Net income for the quarter totaled $39,515,000 or $1.64 per diluted share.
The stock is showing a potential Elliot Wave-5 buy projecting gains into the $90.53 per share area over the next few months. Core Labs does have an options market that is actively traded with real nice liquidity. The options currently extend through January of 2010 allowing the options trader enough time to take advantage of the forecasted opportunity.
Figure 1: Daily Elliott Wave-5 Buy Pattern for Core Labs
(Source: Profit Source)
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Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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