Bullish Technicals Could Help This Stock Dwarf Recent 50% Gains

Globaldemandforoilisstronglylinkedwith economic performance. While 2013 U.S. economicgrowthisexpectedtobeanemic,U.S. oil demandisexpectedtorisein2013froma 15year low. (Source: U.S. Oil Demand Seen Risingin2013From15YearLow,WallStreet Journal, December 11, 2012, last accessed January8,2013.) And, thanks to oilrich shale formations and fracking, the International Energy Agency (IEA) expects the U.S. to tie Saudi Arabiaasworldleadersinoilproductionby2017,surpassingSaudiArabiaby2022. TETRATechnologies,Inc.(NYSE/TTI)isadiversifiedoilandgasservicescompany that operates in three divisions: fluids, offshore, and product enhancement. The fluidsunitaidsindrillingactivities.Theoffshoresegmentdecommissionsplatforms andpipelines,andexploresforoilandgas.Inadditiontoproductiontestingservices for oil and gas operations, the product enhancement division also recycles oily residuals,abyproductofrefiningandexploration. InApril2011,TETRAannouncedthatithadstreamlineditsoperationswiththe sale of essentially all of its subsidiary Maritechs oil and gas properties for approximately$222million.DivestingitselfofMaritechallowedTETRAtoreinvest in its growthoriented service businesses. (Source: TETRA Technologies, Inc. Announces Strategic Transaction, TETRA Technologies, Inc., April 7, 2011, last accessedJanuary8,2013.) As a result, TETRAs financial results are adjusted to exclude the impact of Maritechsoperations. OnNovember6,2012,TETRAannouncedthatconsolidatedthirdquarterrevenue climbed 16.2% yearoveryear to $234 million. Thirdquarter net income from continuingoperationswas$7.7million,or$0.10pershare,versus$1.4million,or $0.02pershare,forthe2011thirdquarter.Totalgrossprofitwas$50.9millionin thethirdquarterof2012,versus$35.7millioninthethirdquarterof2011.(Source: TETRA Technologies, Inc. Announces Third Quarter 2012 Results, TETRA Technologies,Inc.,November6,2012,lastaccessedJanuary8,2013.)

During the first seven months of 2012, TETRA successfully completed three acquisitions:OptimaSolutionsHoldingsLimited,EasternReservoirServices,and Greywolf Production Systems. These three acquisitions have broadened the companyswellcompletionandproductiontestingservicecapabilities,andtheyhave significantly increased its geographic footprint, both domestically and internationally. During the third quarter, the company drew down approximately $57.0 million under its $278million revolving credit facility to fund a portion of the Greywolf acquisition and to cover general corporate expenses. As of the end of the third quarter,ithadapproximately$221millionofborrowingcapacitystillavailable. Totaldebtattheendofthethirdquarterwas$353million,versus$118millionat theendoffiscal2011.Aportionoftheincreaseindebtduringthethirdquarterwas attributed to increased receivable balances associated with two major contracts. TETRAexpectstoreceivetheseoutstandingpaymentsduringthefourthquarter, whichshouldoffsettheanticipatednegativeimpactonitscashposition.

Chart courtesy of www.StockCharts.com FromAugust2011toDecember2012,themovingaverageconvergence/divergence (MACD) was trending higher, while the stock price was trending lower. This

formation of bearish convergence in the MACD suggests that the longterm downtrendinthestockpriceisweakening,andtheremaybeareversaloftrendin place. SincethebeginningofNovember2012,thecompanyssharepricehasbeenbullish, climbing52.0%.InearlyDecember,TETRAssharepricebrokethroughatwoyear downtrend,afurtherbullishsentiment.Inaddition,itisthefirsttimesinceAugust 2011thatthecompanyssharepricehastradedabovethe200daymovingaverage (MA).Furthermore,thecompanys50dayMAisclosinginonits200dayMA,which isanotherbullishindicator. A financiallysolidcompany with a great outlook, TETRA announced that third quarterrevenueswereup16.2%yearoveryearto$234million.Earningspershare (EPS) for the quarter were up 400% at $0.10. A streamlined company with improvingoperations,TETRAcontinuestobeagreatpennystockwithexcellent longtermgrowthpotential.