Robert Lauzon CWC Well Services CWC-X TOP PICK May 21, 2014

Unique in that it is small. Were oil services and just purchased a driller. Top tier client base. No dividend, but it will be capable as it starts to grow.

Excited by their buying of Ironhand which gives them access to drilling rigs as opposed to service rigs they had. Both companies shared very high utilization rates, which is a key to how oil services companies produce very fine rates of return over a long period of time. Likes it at this level.

Liked this because it was just a regular oil service company. Bought Ironhorse, and they are adding to that fleet. Becoming more of a full service company to prepare themselves, for what he thinks will be a material pickup, in activity for drilling and oil field services in Canada. Yield of 6.5%. Thinks there is tremendous upside.

We have good visibility for the next 6 quarters if they operate successfully. Above average dividend and one of the top utilized drillers. A large holding for him.

Talked about this in June. Liked its diversification. It had just acquired a drilling company, so had expanded from just being oil services to being more diversified. Also, had liked the dividend. Just increased the dividend so the odds of a cut in the next quarter or 2 are pretty remote. Just committed to increase their budget to build another rigging bringing them to 9. If they can sustain their activity level, it should do quite well.

(Top May 21/14, Down 80.33%) He has trimmed some. They have no debt problem. It is totally out of favour. Don’t be concerned if they cut the dividend again. It will go up again when things improve.