The Panic-Proof Portfolio (Stockchase Research) Source Energy Services Ltd SHLE-T PAST TOP PICK Feb 06, 2025

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, 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.