Trican Well Service Ltd. (TCW-T)
161 watching
TSE:TCW
3.18
0.32
(9.14%) 1d
Financials
Technical Analysis
Jul 6, 2022, 7:59 pm
0
COMMENT
Would purchase TCW than PD. Owns neither. The collapse on oil price will impair spending further than maintenance capital. There is always a bad actor that ruins the pricing power. Would prefer the producers.
oil / gas field services
$2.770
Unknown
COMMENT
TCW vs. CFW Issue for CFW has been the balance sheet. Lots of debt. Concerns about solvency. Upswing in the sector is helping them. Whereas TCW has a clean balance sheet with rising fundamentals that's all going to equity holders. TCW is a safer blue chip.
oil / gas field services
DON'T BUY
Doesn't see much upside here, though there will be pricing power finally for the pressure-pumpers now that foreign players have left Canada. He begs companies like this not to invest excess money to drill a lot, just keep drilling flat. And use excess cash to buy back shares. The space is less competitive than before. But there are lower returns with service companies than before. Also, their biggest shareholder has been selling shares.
oil / gas field services
DON'T BUY
He does not own any service names. Oil company spending will go to dividend increases, share buybacks or deleveraging. Production growth related spending is a couple years away. Bullish elements for gas has been offset by decrease in production. It is too expensive right now for him to buy.
oil / gas field services
BUY
He prefers services companies to producers. Existing wells decline quickly. Services companies have gear that you don’t have to worry about it declining. Insiders have been buying more recently. This one could be the last one standing.
oil / gas field services
TOP PICK
Their debt is only 8% of equity. They use cash flow to buy back their stock. They are the dominant fracker in Canada. He expects Q2 and Q3 to be tough quarters, but by Q4 there will be a lot of natural gas drilling. His price target is $1.50. If you can buy it under $0.60 it makes sense. Yield 0% (Analysts’ price target is $0.82)
oil / gas field services
PAST TOP PICK
(A Top Pick May 21/19, Down 50%) He figured that oil was near the bottom of the cycle when he bought this last year, but the virus and oil crisis have pushed energy lower. TCW's managers have been buying shares, which encourages him. Also, their balance sheet is strong, especially debt-equity, compared to its peers. This is positioned to bounce back.
oil / gas field services
DON'T BUY
It is difficult to be bullish on the service sector. The rig count in Canada will be decimated he thinks. When you look at the opportunity set out there, he thinks there are better opportunities.
oil / gas field services
BUY on WEAKNESS
The company has a small debt level, but after selling some assets it should become debt free. They are using free cash flow to buy back shares. Under $1 this is a very cheap stock. He expects to begin buying himself soon. They are a major player in fracing in Canada.
oil / gas field services
WATCH
Energy has been bad but energy services has been really bad. He would look to add above $120.
oil / gas field services
PAST TOP PICK
(A Top Pick Mar 11/19, Down 25%) It is still a little early. Their balance sheet is quite pristine. A slight improvement in sentiment in the sector can cause the share price to jump up.
oil / gas field services
DON'T BUY
He has owned this in the past, but not now as spending looks to be declining in the space. Supply in the space is very high. Investors are telling producers to lower spending on growing production. It is difficult to invest in a 6-9 month time window.
oil / gas field services
BUY on WEAKNESS
It is the largest fraker in Canada and has minimal debt. It has been an aggressive buyer of its own stock with free cash flow. Q4 should start to see a recovery. On tax loss selling it will probably be very attractive to own.
oil / gas field services
BUY on WEAKNESS
They have been normal course issuer bids. He has a $2.25 target. Canada has a 41% decline in rig counts. You want to own this for the cycle. Wait for a pull back.
oil / gas field services
BUY
On his top picks list. Attractive long-term. He has a $2.25 target, based on $70-80 oil. Minimal debt. Q2 won't be great. By end of year, activity levels will pick up, plus more natural gas capacity and fracking. Very cheap.
oil / gas field services
Trican Well Service Ltd.(TCW-T) Rating
Ranking : 1 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 0
Trican Well Service Ltd.(TCW-T) Frequently Asked Questions
What is Trican Well Service Ltd. stock symbol?
Trican Well Service Ltd. is a Canadian stock, trading under the symbol TCW-T on the Toronto Stock Exchange (TCW-CT). It is usually referred to as TSX:TCW or TCW-T
Is Trican Well Service Ltd. a buy or a sell?
In the last year, there was no coverage of Trican Well Service Ltd. published on Stockchase.
Is Trican Well Service Ltd. a good investment or a top pick?
Trican Well Service Ltd. was recommended as a Top Pick by on . Read the latest stock experts ratings for Trican Well Service Ltd..
Why is Trican Well Service Ltd. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Trican Well Service Ltd. worth watching?
0 stock analysts on Stockchase covered Trican Well Service Ltd. In the last year. It is a trending stock that is worth watching.
What is Trican Well Service Ltd. stock price?
On 2022-07-06, Trican Well Service Ltd. (TCW-T) stock closed at a price of $3.18.
