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Trinidad Energy Services (TDG.UN.TO)

BUY
As long as energy stays high, the contract drillers will continue to do well. This company has an exceptionally good record over the last couple of years and should continue to do well in the next year or two. If there is a downturn in oil, there could be some weakness.
BUY
Very good management team. Likes this sector.
DON'T BUY
If he were going to buy any drillers, he would prefer Trican Well Service (TCW-T) instead.
BUY
A large Canadian oil service and drilling company. Has been extraordinarily successful in building and buying rigs. The price of this stock and oil are highly correlated.
PAST TOP PICK
(A Top Pick Feb 10/06. No change.) Good value at these levels. One of the best names you can own in this sector.
BUY
At about 50% payout ratio and their yield is about 5%. Good solid management group. Prospects for oil/gas servers companies is very good.
BUY
Yield isn't that exciting on it, but likes it as a service company. Great operator. Expanding their fleet.
TOP PICK
A drilling trust. Good management. Payout ratio of about 60%. Made 2 acquisitions, one in Canada and one in the US. This gives them a firm foothold in the US. Rigs are in very sharp demand. Looking for further distribution increases this year.
DON'T BUY
You are getting 6.5/7% compared to a government bond of about 5% in what might be considered a volatile business. Would prefer having a 9/10% yield which would mean more of a pullback before he bought.
BUY
The predominance of drilling in North America is gas related and low gas prices have hurt them. Nothing is more levered to gas than these service companies so, when gas goes up, this company should do well.
DON'T BUY
Prefers Ensign Energy Services (ESI-T).
DON'T BUY
Remember the service sector is always more volatile than the industry that it serves. Trinidad and Cathedral are drillers relating to the oil and gas industry. Trinidad tends to drill deep wells, where they are targeting gas. Gas prices are relatively weak. They are seeing some investment changes that might affect Trinidad. Cathedral Energy is largely biased towards directional drilling, actively involved in oil. He owns Cathedral stocks, not Trinidad.
TRADE
Performed well over the past few years. It is a drilling stock. He does not mind this stock. Prefers Precision Drilling and Cathedral in which he owns.
BUY
Low payout ratio. Beneficiaries of the boom in oil services. Predicts strong earnings in the next 3 or 4 quarters.
TOP PICK
(A Top Pick Dec 9/05. Up 8%.) The recent sell-off makes a great buying opportunity. Extremely inexpensive at 7 X distributable cash flow. Great management team.
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