Canadian Energy Services & Technology (CEU.TO)

They are in the drilling fluid service sector and have done phenomenally well. Has looked at this several times, but what has made him think twice is that it tends to trade at a fairly rich valuation. If it sold off, this might be one he would look at.

Has a good dividend policy with a decent yield of about 3%. Thinks they have increased their dividend by about 40% per annum in the last 5 years. Likes the energy services sector, but is not a holder.

Is it normal for insiders to be selling when you have a stock split? It is usually not normal. Those who follow insider buying and selling would certainly be alarmed. This is currently at $9.94 and its FMV is $9.82, a negative 4%. Very, very expensive here. These energy services companies have had huge runs over the 6-7 months. They are fully valued. This is too highly valued for him.

Great management team. Very entrepreneurial. Great expansion story into the US businesses. Levered to the evolution of fracing into the shale plays. Has never really been that cheap, but at these levels it is an interesting name and one that people can own.

This has had a more shallow correction so he rather likes that corrected period. Chart indicates an A, B and C. Sometimes the B will be a little bit higher, but he thinks you are fine. There is support at around the $9.50 area.

One of the main holdings in his energy infrastructure fund. This company makes the chemicals that make fracing work. Getting good margins and they are growing. Now into the oil sands where they are probably going to be a big player. Had run up to $30, so they split it 3 for 1 and it traded off from $11.50 to around $9. This is a very good entry point.

There is a boom in the production of drilling. Earnings growth is strong. Good support at $30. A lot of energy companies pulled back over the last few weeks and he is not that bothered by it. You can buy it here as it has pulled back to natural support.

Just did a financing. Likes the visibility for this company. Propriety fluids and liquids for drillers.

Does cleanup around camps and drill sites. It feeds well into the growth, production and growth in finding and lifting oil and gas.

In the business of producing chemicals for fracs and have been getting really good productivity. A very “custom” business. Every frac is a little different and you need the right chemicals to get the maximum value. Really good relationships with the people drilling the wells. With the run that it has had, you may want to wait until it comes off a bit. Has lots of room to go.

Ranks well in his process. He might take a look at it in the summer.