Trinidad Drilling Ltd (TDG.TO)

A well managed company with a great balance sheet. They are always looking out for what is coming around the corner. He would be picking away at this.

This is one that he is watching. You have to be careful in this environment. Sentiment indicators on oil and gas are crazy low, but that doesn't mean they can't get lower. He is looking for some direction on the oil price, which will definitely play into the thesis on a name like this. A cheap name and a high-quality name.

This one is super cheap right now, and is actually trading below its Book Value. If he had some certainty that energy prices were going to firm up or at least stay at the current level, he would probably take a look at this.

Stock has dropped 40%. There was a bit of an earning’s miss last quarter, but it was very explainable as they were in the process of moving some rigs to new locations. They have tremendous growth, especially with their joint venture they have with Halliburton on a global basis for deep rigs. Dividend yield of 2.63%.

Sold it from his funds yesterday and today. There is nothing specific about the company. There is going to slack in the drilling and pressure pumping businesses. The balance sheet is fine, but the trade is dead at this time.

His model price is $12.79, substantially above the current price, however he has had 3 “negative transits” from the $13 level, which is a Sell signal. It needs to find a bottom.

Drillers have performed quite poorly, and this was even before the major selloff started. This looked really quite expensive in the summer. He is not sure that it has hit bottom yet. The drillers have to stabilize and build a bit of a base here, and he does not see that yet.

Don`t catch a falling knife. You don`t know how much damage there will be in the price of crude. Look for companies that are trading well in this environment.

This is one that he has been taking a serious look at, and has been nibbling away. He also likes Precision Drilling (PD-T). Feels Trinidad has a little bit of an advantage.

Typically the smaller companies in Canada have been pretty quick to respond to a drop in energy prices. Most of them will have some kind of hedging in place to weather a short-term dip in the energy price. This company has quite a few long-term contracts and are well diversified. All their rigs are utilized in the US now, and the returns remain pretty robust for energy companies.

It looks like it is breaking down. You want to see higher highs and lower lows. We took out the previous low and this is a danger sign. You want to see a breakout to the upside before you buy this stock.

The energy sector looks to be of value right now relative to the other sectors on the TSX. There may be a little more downside. This one is interesting to him and it is a fine company.

He is a big fan of oil and gas infrastructure. Great balance sheet. If you compare to PD-T, it has come down as well. He would prefer PD-T however.

A good time to get in. There was a disappointment on the most recent earnings. September is a good time to get in at the beginning of the drilling season.

Likes it here. Likes the Halliburton project. He took profits recently, but now they have fallen so he is ready to buy back. Put it away for a while. Their balance sheet is better than it was in the past.