Stock price when the opinion was issued
Remember to buy a sector when it looks terrible, not when it's up 80-90% ;)
Still likes it but not as much, as drilling is weaker than thought. Selloff in oil, drop in rig count. More efficient drilling ultimately means less work. Continues to de-lever. Everyone's excited about natural gas. Massive exposure to nat gas in Canada, which has better dynamics than US. About a 3.7% weight for him.
More drilling 'should' result in more activity for the service sector, of course. PD is very cheap and seeing fundamental improvement. We would be comfortable in the $76 to $77 range.
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Drilling services to energy (oil & gas) producers. This name weakens when energy companies decide to pull back on drilling; they do that when the commodity's weak and there's less $$ to spend. Very volatile, and that's why she stays away.
Gets swayed by underlying commodity prices and the energy sector, in general, has come off. OPEC has indicated its cutbacks won't continue; a bizarre move in the face of weaker demand, which suggests they need revenue from energy volumes to drive their economies.
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.