PDS
Posted: Fri Jan 10, 2014 1:03 pm
Precision Drilling: A Bright Future Awaits For This Canadian Driller
complete article---
http://seekingalpha.com/article/1936891 ... e_readmore
Conclusion
Precision Drilling's growth has stalled since 2012 as the company has reported shrinking revenues and declining earnings. The business, however, now appears to be on the verge of a turnaround and has shown clear signs of improvement (higher drilling rig revenues per utilization day and sequential improvements in active rig count). Furthermore, Precision Drilling's market share and its high-performance rig-mix puts it in a good position to capitalize on the expected changes in the industry conditions coming from the LNG development at the west coast.
For these reasons, I am bullish on Precision Drilling and I believe the current dip was an attractive opportunity for long term investors. The company's shares are still attractive as they are hovering around $9.15, which is below the pre-AIM sale announcement level of $9.62. Analysts at Jefferies and Raymond James have recently upgraded the stock with a price target of $11 and $11.50 respectively.
complete article---
http://seekingalpha.com/article/1936891 ... e_readmore
Conclusion
Precision Drilling's growth has stalled since 2012 as the company has reported shrinking revenues and declining earnings. The business, however, now appears to be on the verge of a turnaround and has shown clear signs of improvement (higher drilling rig revenues per utilization day and sequential improvements in active rig count). Furthermore, Precision Drilling's market share and its high-performance rig-mix puts it in a good position to capitalize on the expected changes in the industry conditions coming from the LNG development at the west coast.
For these reasons, I am bullish on Precision Drilling and I believe the current dip was an attractive opportunity for long term investors. The company's shares are still attractive as they are hovering around $9.15, which is below the pre-AIM sale announcement level of $9.62. Analysts at Jefferies and Raymond James have recently upgraded the stock with a price target of $11 and $11.50 respectively.