Precision Drilling (PD.TO)

Sees this whole sector becoming more active as more money gets pumped into the oil patch with more and more drilling taking place. Has a good reputation. Solid company. Thinks the stock will continue to show appreciation.

He is looking at the overall theme of LNG drilling in Northeast British Columbia and Northwest Alberta. Looking at the demand for energy generally, this company has great exposure worldwide and is comparatively cheap.

All these drilling stocks are a bigger, more leveraged play on energy markets so they are more volatile. They use expensive equipment so there is more financial exposure than we would like. Prefers Shawcor.

Very interesting chart. Had some problems for several years. Chart shows a slow recovery starting in 2012 and the momentum is increasing, which is very positive. Volume is starting to pick up. The breakout began in February. He would be Buying and using the 50 day moving average of around $12.27 as a Stop. Doesn’t see any strong resistance until you hit around $17-$18.

(Top Pick Sep 12/13, Up 27.49%) Have been delivering on all markets. More upside to come. Increased margin over the last few quarters. Extremely comfortable with this name.

Difficult times for the drilling service area are quickly coming to an end. Drillers are set up for a very good year this year. Ground is starting to get mushy this year. They diversified into the US and that division is quickly catching up. Prefers Canyon.

Reported a pretty good Q4. Outlook looks good. Drilling environment in Canada and the US has been basically flat year-over-year in the 1^st quarter, but activity looks to be picking up, especially if you get some of these LNG facilities green lighted.

One of the largest growing companies in Canada and 3^rd or 4^th largest in North America. Just released results which were very strong. He tries to Buy the drillers when they are trading at BV or a little above and then Sell when they are expensive. As we get out of winter, we’ll see lower drilling in Canada. Sold his holdings and moved into Trinidad Drilling (TDG-T), which also had strong results and is expanding into Mexico and joint ventures in Saudi Arabia.

This follows the natural gas cycle. Drillers move more than the overall oil/gas market. The biggest issue he has is drilling activity. Exporting to the US is way down. There are great pockets of opportunity in liquids rich gas, but in general, he feels the producers are struggling.

EBITDA is around 12X EP so it is in line with its historical multiple. Stock has been hugely volatile and has been a great trading stock. If you own, he would take money off the table. When you look at the CapX program in North America, you are looking at single digit growth. Even for the drillers, and the fracers for that matter, there is still a lack of pricing power. Wait for a correction into the low $9’s before buying.

Service companies are a safer way to play the sector. He is going with the big guy. You had your bottom and now it is in an uptrend.

Likes infrastructure. In 2015, the US will be the world’s largest oil producer, so it is imperative that if you buy a driller, it has to have a US operation as this one does.

Not a fabulous chart but okay, you do not want to see this stock break $9ish, but keep it until then.

Aimco sold a block, driving share price down but it had nothing to do with the operation. A new holding for him. Have about 200 rigs. 2.5% dividend.

Recent drop really has nothing to do with the company. This company has decent growth ahead of it. Has been a little bit slow in drilling in the US in the last year or 2, but looks like this is going to improve. Also, there is the LNG build out in Canada, which they are tendering and building rigs for. Over the next couple of years, it looks pretty good. Reasonably priced.