Robert Lauzon Source Energy Services Ltd SHLE-T RISKY Sep 01, 2023

Our PAST TOP PICK with SHLE has achieved its target at $14.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $8.50) to $9.50.

We reiterate SHLE, a frac sand distributor as a TOP PICK.  The company recently announced a partnership with Trican Well Service to develop a world-class storage facility in NE BC, capable of receiving unit trains -- this should make it a key player in the development of this region.  It trades at 4x earnings and under book value.  We recommend trailing up the stop (from $9.50) to $10.50, looking to achieve $15.00 -- upside potential of 28%.  Yield 0% 

We reiterate SHLE, provider of frac sands as a TOP PICK.  Last reported earnings confirmed a 136% increase in free cash flow and 31% expansion in margins, which was allowing for continued retirement of debt.  It trades at 4x earnings, under book value, and a robust ROE of 168%.  We continue to recommend a stop at $10.50, looking to achieve $15.50 -- upside potential of 19%.  Yield 0%

Our PAST TOP PICK with SHLE has achieved its target at $15.50.  To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10.50) to $11.50.  

Our PAST TOP PICK with SHLE is progressing well.  To remain disciplined, we recommend trailing up the stop (from $11.50) to $13.00 at this time.

Our PAST TOP PICK with SHLE has triggered its stop at $13.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous guidance, this will result in a net investment gain of 14%.