Opinions John Stephenson
Trinidad Energy ServicesTDG.UN.TODON'T BUYFeb 08, 2008
(Caller's comments; Going back to a corporation. Will be paying a 6% dividend and moving a lot of their operations to the US.) One of the first test cases of conversion from a trust. Drilling in Canada is really a problem right now. When gas prices come down, drilling contractors get laid off. US is a highly competitive market and while they may have better rigs, results of a move there is yet to be seen. A good name, but wouldn't be backing up the truck.
$10.07
Stock price when the opinion was issued
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WEAK BUY
This is one of the newer rig fleets, so he thinks it is quite attractive. Also, they are more of a drilling company, as opposed to a fracing company. A global company with rigs in Australia as well as Canada and the US. He would classify this as a cautious Buy. Historically between now and the end of March is a good time to be in these.
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HOLD
One of the best operators of the types of rigs needed to drill tight gas wells. These are high-cost wells so you need the best operators to keep costs down. Have been expanding in the US and building capacity so it is a bit of a growth story. Converting to a corporation has shaken some holders, so would Hold for 2 years until this was over.
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COMMENT
Recently converted to a common stock structure, so reduced their payout significantly for 2008. Have moved a significant amount of their business outside of Canada. Sees drilling rigs and economics much more favourable in the US than it is here. All the drilling/oil services are currently in a bit of a head wind.
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BUY
Likes this one. Has gotten pretty badly beaten up. They have a good size fleet with good up-to-date rigs. Has recently bought some shares.
David CockfieldOwned
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HOLD
This trust has a very great story behind it, which a lot of institutions liked. However, the trend line was broken in June and the stock is now in decline. Part of this may be due to talk that they may un-trust. Feels it is into very deep support, so if you have it, he would continue to hold.
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