Josef SchachterEssential Energy Services Ltd.ESN.TOHOLDFeb 28, 2019

It has only $19 million of debt and has a book value of $1.15. He thinks the stock is a buy here. It is one of the country’s largest coiled tubing company. He has a 12 month price target of $1.20. He will like be strongly recommending it during the tax season loss selling period November or December.

(A top pick September 18/17, down 11%). Is Canada’s largest coil tubing company needed for drilling and fracking. Very good numbers in 2nd quarter. Book value is $1.15. Has a 1 year target of $1.20 and a 3-5 year target of $5.00. These stocks are totally ignored.

(A Top Pick Sep 18/17, Down 8%) He has a $1.20 target for it. Because the Canadian drilling industry as not recovered it has not done well. Book value is $1.17. He would stay with it. This is a Canadian LNG leveraged story.

He thinks pipeline capacity is increasing, which will be good for energy services companies. ESN is the largest coil tubing operator in Canada. It has $18 million debt versus $160 million of equity. Book value is $1.13, compared to a price of $0.52 on the day of interview, so the price is half of book. In turns of upside, it traded at 1.2x book during 2014, so in the next cycle, this company could trade for $1.20 to 1.30. His one-year target is $1.20.

It is a bit small cap for him. It has good price momentum, good valuation, is cheap on a book value basis, and has a good balance sheet. You can buy it for a cyclical recovery.

The only public company that is a coil tubing operator. Book value is $1.16 so it is trading at a discount. They won a recent patent suit. He recommends it and likes the story. His only hesitation is that these companies have to tell their story. These guys are reclusive in this respect.

Their results this week were very good. A law suit against them was resolved in their favour. He thinks it will go up a lot and covers it. He thinks in 3-5 years it will get to $5.00.

It has rolled over. It is the largest coil tubing operator. They have a book value of $1.14 and is trading half that. It went from 50 cents to 2.18 and is now back down almost to that level. Over half of the stock is held by institutions. He will put it on his action buy list in the next couple of months. (Analysts’ target: $1.05).

A coil tubing operator. They sold their service rigs to Precision Drilling (PD-T) and are the largest coil tube operator in Canada. Insiders own a big chunk of the company of about 10%-11%. A very good operator. It could potentially be a $5 stock 3-4 years from now. Any time you see weakness, this would be a Buy.

Has debt of $18.2 million, but that is on a $60 million line. 142 million shares are outstanding. Had a very, very good 1^st quarter. The cost structure has come down significantly. Insiders own about 30% of the stock. They did $10.2 million in EBITDA in Q1, up from a -$2.2 million. Feels this is a great and attractive buy under $.60, and a table pounding buy under $.52. A stock you definitely want to be looking at.

It is essentially a small cap. They are the largest coil tubing manufacturer in Western Canada. They just announced their best results since 2014. It has one of the best balance sheets of the service providers in Alberta. It does not get as much attention because it is small cap.