BJS Talks Doom & Gloom But Shareholders Buy?

BJ Services (BJS) an petroleum services company has been announcing poor results as the demand for drilling drops off and rig utilization rates drop. When you listen to the management this all makes sense. But management comments are all about the rear view mirror and very little effort is put into looking forward. All executive commentary are doom and gloom.

The stock has dropped from a 52 week high of approximately $34-$35 range to as low as $8.34. It currently has rebounded quite smartly to around the $16 range. The stock has attracted a lot of very recent attention in the options market. Effective May 4, 2009 at lot of insiders were granted options in non open market transactions and they all seem happy enough to not sell.

So senior officers talk doom and gloom. But they do not sell personal holdings and continue to acquire shares by virtue of employment compensation. That’s disclosure for you.