Basic Energy Services Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Basic Energy Services (NYSE: BAS  ) rose more than 10% in early trading after the company surpassed analysts' target for fourth-quarter revenue and earnings. Enthusiasm for the stock has waned since this morning, however, and the shares are up just over 1% as of this writing.

So what: Revenue for this small Texas supplier of oil and gas drilling services rose 66% to $212.9 million. Net loss went from $0.61 in last year's fourth quarter to just $0.05 in the same period in 2010. Analysts were expecting a $0.13 per share loss on $209.8 million in revenue.

Now what: You've got to love a business that says exactly what it does. Basic. Energy. Services. Awesome. Even so, today's there's no reason to buy this stock before the company gets back to producing a profit, as it did routinely prior to 2009. Today's intraday pullback likely reflects that.

Interested in more info on Basic Energy Services? Add it to your watchlist. You can also try any of our Foolish newsletter services free for 30 days.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.


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