Layne Christensen and its Uncommon Markets

Layne Christensen (LAYN - commentary - Cramer's Take) is a bit of this, and a bit of that, and its being in several markets is part of its appeal. So is its longevity and prominent position in one of those markets.

The company dates its beginnings back over 100 years when it started a business of drilling for water. Services and products related to water and wastewater infrastructure remains its largest market. The company refers to itself as "the world's leading groundwater services company."

In this market, it does water-well drilling, well and pump repair and maintenance, water and wastewater treatment and repair, construction of wastewater and surface-water treatment plants and pipeline and sewer rehabilitation. This is a desirable market because of the world's dwindling supply of accessible drinking water and the need for governments to increase the supply of water and to maintain and improve the existing water infrastructure.

The company is also involved in the mineral exploration industry, providing a range of drilling services related to the industry's need to identify, define and develop underground mineral deposits.

Its third market involves the company in the production of what it calls "unconventional" natural gas for the energy market. What are unconventional are the natural gas sources used.

In this market, Layne provides drilling and oil-field fishing services used to extract gas from such sources as coalbeds, shale and tight sands. The company is headquartered in Mission Woods, Kan., and operates in many countries.

Readers of this column know my primary criterion for choosing a stock to recommend is whether it gets the approval of any of my guru strategies. These are automated strategies I created by studying the ways some of Wall Street's greatest thinkers, which I then programming into a patented computer program. Layne gets a strong approval rating from my strategy based on James O'Shaughnessy's thinking, and interest from my Ken Fisher strategy.

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At the time of publication, Reese had no positions in the stocks mentioned, although holdings can change at any time.

John P. Reese is founder and CEO of Validea.com, an investment research firm, and Validea Capital Management, an asset management firm serving affluent investors and companies. He is also co-author of the best-selling book, The Market Gurus: Stock Investing Strategies You Can Use From Wall Street's Best. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Reese appreciates your feedback. Click here to send him an email.

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