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$54.25 6.19 (12.88%)
8/28/2008 4:00 PM

Layne Christensen Company (LAYN)

CAPS Rating:
*****

The Company provides drilling and construction services and related products in two principal markets: water and wastewater infrastructure and mineral exploration, as well as being a producer of unconventional natural gas for the energy market.

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What the Community Thinks

Total Members

308 Outperforms
8 Underperforms
 

All-Stars

118 Outperforms
2 Underperforms
 

Wall Street

3 Outperforms
0 Underperforms
 

Members bullish on LAYN are also bullish on:

Members bearish on LAYN are also bearish on:

Ticker Tags

General Contractors (12), Infrastructure (18), Small Cap (1922), Water Infrastructure (14), Heavy Construction (27)
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Layne Christensen Company At A Glance

Current Price: $54.25
Last Trade Time: 8/28/2008 4:00 PM
Open: $54.40
Previous Close: $48.06
Daily Range: $51.78 - $55.00
52-Week Range: $32.08 - $59.19
Volume: 788,556
Market Cap: $924.29M
P/E Ratio: 21.36
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Stock Trends

LAYN VS S&P 500 (SPY)

LAYN 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

5

Layne Christensen Company (LAYN)

Avatar Toddq34 (68.22) Submitted: 4/08/08 10:45 AM

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 ...More

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Top Bear Pitch

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CAPS Members

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Recs

0

 (LAYN)

Avatar tixareforkids (< 20) Submitted: 8/28/08 12:18 PM : Outperform Start Price: $52.86 LAYN Score: 2.38

NG play

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Recs

0

 (LAYN)

Avatar lllchicalll (< 20) Submitted: 6/04/08 10:13 PM : Outperform Start Price: $46.45 LAYN Score: 22.97

tag-infrasture

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Recs

0

 (LAYN)

Avatar LEGMAKER (< 20) Submitted: 6/02/08 10:58 PM : Outperform Start Price: $49.71 LAYN Score: 15.67

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.


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Recs

0

 (LAYN)

Avatar binv271828 (< 20) Submitted: 5/30/08 5:36 PM : Outperform Start Price: $47.04 LAYN Score: 23.34

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.

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Recs

0

 (LAYN)

Avatar toshimelonhead (< 20) Submitted: 5/28/08 5:00 PM : Outperform Start Price: $50.24 LAYN Score: 14.34

I'm mad I stopped my pick on this one.

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Wall Street

Results 1 - 3 of 3  

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Top
Pick
Member NameMember RatingStart
Date
CallTime FrameStart
Price
Stock
Gain
S&P
Gain
ScorePitch
TrackRonBaron 90.37 03/31/08 Outperform NS $35.02+54.91%-1.35%+56.26 Toggle the visibility of 60-Second Pitch and replies
TrackJimCramer 81.79 11/28/07 Outperform 3W $58.00-6.47%-11.51%+5.05
TrackJohnKeeley 96.68 09/30/07 Outperform NS $55.48-2.22%-14.67%+12.46 Toggle the visibility of 60-Second Pitch and replies

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