The Panic-Proof Portfolio (Stockchase Research) Source Energy Services Ltd SHLE-T TOP PICK Sep 24, 2024

The Calgary based frac sand supplier recently reported 98% utilization in its trucking fleet -- an increase from 89% from a year ago.  Its rail facility in NE BC has achieved unit train size capacity, which will add further revenues.  We like that it trades at 4x earnings and under book value.  We recommend setting a stop-loss at $8.50, looking to achieve $14.00 -- upside potential of 27%. Yield 0%

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, 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%.