Peter Hodson
Technicoil Corp.
TEC-T (acquired
BUY
Feb 07, 2005
Very viable right now as he likes the space. Very well managed. Has had a very good run along with the whole sector. Possible Trust? Wouldn't buy for a one year period, but for a 3 year period, would be OK.
A wonderful company to own. There is lots of talk about the company getting taken out. A well-run, clean company. Amazing exposure to the booming oil/gas sector.
75% of all wells drilled in Canada last year were natural gas with an increasing number to the coal bed methane. Expects this to further increase this year. This company should be one of the main beneficiaries. Recently raised money to build out their fleet. Could be a take-out.
Provides coiled fracking rigs to be used in the coal bed mathane area. Wasn't well understood. Had gone through a period of consolidation and about to make a large move up. Sees earnings of $0.50 in 2007.
There will be an awful lot of wells drilled for coal bed methane over the years, especially if gas prices remain above $5. With their tubing they can drill a lot of wells and generate a lot of production. Expect them to have good returns over the years.
(A Top Pick Aug 30/05. Up 18%.) 2005 was a “show me” for this company. Had a lot of delays in getting drilling equipment and fraquing rigs. Finally have had the start of roll out of the rigs and will have the full fleet in utilization by the 2nd week of January. They’ll go from $0.08 to $0.30 in earnings next year. A strong buy.
Likes oil services. Interesting looking chart. He is going to follow and probably take a position in it. Pick it up when it goes down $2 in a pull back. He doesn’t see any resistance on he upside. $1.75 stop.