Western Energy Services (WRG.TO)

This is just going to carry on suffering for the time being, and even lag. Some of these service companies could be worse, not directly the oil companies themselves. One of a bunch, but not one of the best.

There is a lot of value here. This is one of the better drilling companies to own. Have about 50 drilling rigs in Canada, about 5 in the US and a fleet of service rigs. The average age of the drilling fleet is about 4 years. Debt levels are reasonable. Utilization and day rates for their drilling rigs are above the industries averages. A company that is worth owning if you want to be constructive in the services space.

The chart shows the trend is lower highs. The significant moving averages are pointing lower. There is nothing really positive about this. This could go significantly lower.

Second favourite driller. Thinks they will have a strong quarter. They are now more efficient after lowering costs. Will benefit from increased cap-x spending.

One of the better Junior drillers out there. Especially if the LNG stuff gets approved and starts moving forward, a lot of Canadian oil/gas service companies are going to do quite well.

(Market Call Minute.) Given what has happened to their customers, in terms of the gas drillers in particular, he thinks you are going to see some increased activity and feels the stock will continue to go up.

(Market call minute.) 4% yield

Chart doesn’t show that much is happening. Has a band between $6.80 and $9.90 that has run from early 2011 to the current date. Looks like you would want to buy it on a breakout. He would prefer names that are a bit bigger such as Calfrac (CFW-T).

(A Top Pick Nov 2/11. Down 8.55%.) Pretty thinly traded stock so it could be up or down 5% in a day. Bought this for a 3-4 year investment. Lowest cost, fastest growing drilling company in North America. Highest margins and highest operation rates. 3.6% dividend yield which he feels they can grow at some time.

Likes this company very, very much. Tremendous management team. All oil field service companies have languished because people are concerned that maybe they are going to buy something. One of the 2 best companies operating in Canada now. Just declared a dividend of about 5%.