Our two Rice University summer interns (Jared and Maria) took a field trip up to visit with Bill Mitcham, CEO and Rob Capps, CFO today. We had a great meeting (over an hour) and I feel even more confident about my forecast model and Fair Value esimate.
Jared and Maria did a great job on the MIND company profile. I will add my comments and an updated Net Income and Cash Flow Forecast model. It should be posted under the Sweet 16 tab on Monday.
Mitcham Industries (MIND)
Mitcham Industries (MIND)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Mitcham Industries (MIND)
Our new company profile for MIND is now available on the website under the Sweet 16 tab. Just click on the company's logo.
The Sweet 16 took a beating with the rest of the market and it didn't help that we had a little dip in the oil prices. MIND's core equipment leasing business is indirectly tied to the price of oil and, to a lesser extent the price of natural gas. BTW they see a large increase in demand for seismic in eastern Europe as those countries go after their own shale plays. Very bullish for our own FX Energy (FXEN).
One thing that came out in our meeting with Bill Mitcham and Rob Capps last Friday was that the oil business in Columbia is booming (an understatement). They feel the overall business environment is quite friendly there and every better for Canadian based E&P companies than the U.S. based firms. Obviously, my motive was to get a better feeling for how well Petrominerales (PMG) and Gran Tierra (GTE) will be doing in Columbia.
MIND also has an office in Lima, Peru. They feel that the negative reaction by the market to the recent election in Peru is way overdone. This should not surprise any of you.
MIND is on-track to have the best year in company history. They went public in 1987 to that is saying something. The share price ran up to $26 a few years ago when the company was not anywhere close to where it is today. We can expect to see significant top line and bottom line growth for at least the next three years for this one.
The Sweet 16 took a beating with the rest of the market and it didn't help that we had a little dip in the oil prices. MIND's core equipment leasing business is indirectly tied to the price of oil and, to a lesser extent the price of natural gas. BTW they see a large increase in demand for seismic in eastern Europe as those countries go after their own shale plays. Very bullish for our own FX Energy (FXEN).
One thing that came out in our meeting with Bill Mitcham and Rob Capps last Friday was that the oil business in Columbia is booming (an understatement). They feel the overall business environment is quite friendly there and every better for Canadian based E&P companies than the U.S. based firms. Obviously, my motive was to get a better feeling for how well Petrominerales (PMG) and Gran Tierra (GTE) will be doing in Columbia.
MIND also has an office in Lima, Peru. They feel that the negative reaction by the market to the recent election in Peru is way overdone. This should not surprise any of you.
MIND is on-track to have the best year in company history. They went public in 1987 to that is saying something. The share price ran up to $26 a few years ago when the company was not anywhere close to where it is today. We can expect to see significant top line and bottom line growth for at least the next three years for this one.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group