Layne Christensen Company (LAYN)

Layne Christensen Co., which provides drilling and construction services, said Tuesday its fiscal fourth-quarter earnings soared 44 percent, mostly due to growth in its mineral exploration division.

The company earned $9.6 million, or 50 cents per share, compared with $6.7 million, or 42 cents per share, in the prior-year period.

Revenue rose 16 percent to $223.6 million, from $193.1 million in the year-ago quarter.

Analysts were expecting a profit of 37 cents per share on revenue of $214.5 million, according to a poll by Thomson Financial.

The company said sales in the mineral exploration division rose 28 percent to $47.6 million in the quarter, helped by strength in Latin America and high metals pricing.

For the full year, the company posted a profit of $37.3 million, or $2.20 per share, compared with $26.3 million, or $1.68 per share, in fiscal 2006.

Revenue jumped 20 percent to $868.3 million.

This is a great stock, i have ridden it up and up, just make sure you take a little off the top as it goes because there are great resets like the one today. The stock just fell to 46 and change and is going to break 60 by march o8. Over the last 2 years layns profits have been boosted by there water treatment expansion, and with the energy bill being passed, the need for cooling systems (water) used in the production of ethanol are going to be needed and funded by our government. Estimating 10 million excess revenue possibly for the first quarter. Rest of business is doing great and promises to be a leader through 08 much like 07.

Water water water water water water.

Financial Statements look good on this company, if it continues the trend of making money will be a good investment. Sales up every year, costs controlled for that period which left profit.

Oil and water and mines, oh my!

All my favorite industries in one cheaply priced stock. PEG is less than one, even with the conservative growth estimates.

Oh my!

will not perform until we see the end of credit mess or recovery from recession

Currently trading at 48% intrinsic value.

three principal markets: water resources, mineral exploration and geoconstruction.

Has WATER & MINERALS.

Undervalued with great earnings report. One could say their Market Cap doesn't justify stock price, but people are buying the companies potential here.

A key element in the future of Layne-Christensen is the use of Ranney well technology. The world around us needs clean water. It is of importance in the United States in dealing with ground water contamination. It is needed throughout the world as a first step in improving the health and agricultural productivity of third-world countries.

Water play. Water is a valuable resource and will only become more valuable (unless populations start declining). Has business in both water distribtution and wastewater handling. I also like the mineral exploration and unconvential natural gas producer aspect. Nice bonus!.

I like the industry a lot. LAYN has a fair amount of debt (D/E is about 0.1), but seem manageable. But they are growing like crazy. EPS Growth of 42 compared to PE of 22 is a nice incentive for a highly growing company in an increasingly important market.

Layne is another energy company who continues to drill and acquire land for future drilling. They take good care of their landownders and are planning for a bright future in the natural gas industry.

9.000

Lets see, Layne is involved in natural gas (bull market), mineral exploration (bull market), and water infastructure (bull market).

Drilling for water, geothermal, and oil reserves.... need I say more?

With all the excitement surrounding the energy and agricultural markets, there is one commodity that seems to get ignored. It is not exciting like geothermal energy or drought resistant corn seeds, but it is something the world needs and that is water. Water covers more surface of the planet than land does and we still have difficulty meeting the world’s needs. This is important, as most of that water is salt water and requires desalination to make it usable for drinking. Water infrastructure plays are hard to find and should be well positioned as the Europe and the United States need their water systems upgraded and redone, and many of the emerging markets need them installed.

LAYN was named to the 100 fastest growing companies list by Fortune magazine. They were place 78th on the list. This company not only helps provide the world with drinkable water, but they also do mineral extraction and aid energy exploration companies. Their recent move into unconventional drilling of natural gas has helped to diversify. Last year was a record setting year as revenues were up 20.1%, net income was up 41.9% and EPS was up 31%. They have now improved year over year results for four straight years. Their water business increased revenue by 20.2%. Their mineral exploration business saw revenues increase by 19.9% year over year. Unconventional gas exploration and production saw revenues increase 46.8%.

LAYN’s chart is very bullish pointing to their triple top breakout on May 21st. After a pullback starting in December the stock fell from $58 to $32 and there is a distinct possibility that the stock will test this high sometime in the near future. Over the last four quarters LAYN has beat all four times. They beat earnings by 52.9%, 20%, 3.5% and 35.1% respectively over the past year. Current earnings estimates of $.54 per share are just 3.8% better year over year and that is on revenues of $231.56 million which is 14.9% better than last year. I do believe that this company’s earnings will be pushed over the top by stronger natural gas prices, not only for this quarter but for the rest of the year. Their sizeable acquisitions could realize savings and increase growth much quicker than estimated.

All areas of this stock look to be well positioned, but most importantly their consistency with earnings should be watched closely as they have consistently outdone expectations. Look for this company to be firing on all cylinders for the rest of this year, plus there are very few companies with this type of water exposure. Also, buyers seemed bullish on Monday going into earnings, pushing the stock price up 3.99% on Monday.

These guys lead the water to the horse. A pure-play in sewage and waste water infrastructure projects.

water infrastructure play. Low PE (7.5) and good management.

just another value based water bid also IR MLI ROK