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Investor Insights

This summary was created by AI, based on 1 opinions in the last 12 months.

Experts believe that High Arctic Energy Services Inc. (HWO-T) is a forgotten name in the market, but they expect the demand for oil to rise, leading to increased demand for energy services. Despite not being in the limelight, there seems to be an underlying positive sentiment about the potential for growth in the company as the energy sector rebounds.

Consensus
positive
Valuation
undervalued
Similar
Petrobras, PBR-A
DON'T BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Splitting the company into two to separate the PNG business makes sense to us. The return of capital could be as much as 76c per share. This all sounds attractive...BUT....it is already a very small company. With less capital, and a split, shareholders will be left with two tiny market cap companies, and it is very possible that they will struggle to get investor attention. Valuations are cheap, but owning two sub ~$30M market cap companies may prove to be very frustrating, unless small caps stage a big rally. Adding in cyclical risks, and we think the 36% YTD gain already reflects some of the possible potential. Thus, we are less enthusiastic at this time on this split. 
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oil / gas
COMMENT

He hasn't looked at this in years and it's a forgotten name. But he expects demand for oil to rise so there will be demand for energy services.

oil / gas
BUY
Really likes it. Mobile drilling rigs in Papua New Guinea with good margins and lucrative business. There will be more contracts. Service business in Canada doing well. Clean balance sheet, working capital surplus. Target price of $5 in the next few years.
oil / gas
PAST TOP PICK
(A Top Pick Mar 28/19, Down 80%) No debt and strong balance sheet. They just replaced their CEO whom he will soon meet. HWO will survive. They cut their dividend to zero. Strong fundamentals means they will endure.
oil / gas
BUY ON WEAKNESS
He likes it. They are in both Canadian services and drill rigs in New Guinea. It has a good balance sheet. 7% dividend last week and it is secure. He would add on weakness.
oil / gas
HOLD
It has a dividend yield of 6.3% and is involved in drilling rigs that are helicoptered in. They have a service rig business in Canada and the US. They are large on both sides and building their US side. This one has a dividend so there is more support than others is the space.
oil / gas
TOP PICK
They have two trains to move LNG and will potentially put on two more. They have a Canadian service business they are moving into the States and have no debt. About a 5% yield. He has a $4.80 target with $18 in the cycle. This is his mid-cap recommendation today. (Analysts’ price target is $4.75)
oil / gas
PAST TOP PICK

(A Past Top Pick Jan 18/17, Down 24%) They have a big drill program in New Guinea. They look very good from a financial point of view. You can’t fight the tape in the energy sector. They have no debt.

oil / gas
COMMENT

The key question is if the energy market turns around. If it did, this would be on the top of his list for stocks to own. They are in great shape on the balance sheet. It scores in the top 1% of valuation. This company will be a survivor. The problem is, he wants a stock that isn’t continually going lower every day.

oil / gas
BUY

She does not tend to look at PE ratios in oil services companies. They have assets in New Guinea and Canada. They are looking at an LNG project. There may be some downside risk on contract negotiations. It is generally a well run business.

oil / gas
BUY ON WEAKNESS

You could nibble away at it. He is not a real big fan of the sector as it is rolling over a bit. He likes their dividend, balance sheet and management team.

oil / gas
TOP PICK

They have Papua New Guinea operations and Canadian operations. All through the energy downturn, this company kept a clean balance sheet, and most years they had an excess cash position. Last year, they took advantage of it and bought 68 new rigs in Canada. Now the cycle starts to turn. Trading at 8X earnings. Dividend yield of 3.65%. (Analysts’ price target is $6.29.)

oil / gas
COMMENT

Probably a little too early to get excited about the drilling services sector. You need to see better sustained oil prices before a company starts spending more money. This company kept its balance sheet clean right through the cycle. They pay a nice dividend. They are survivors, and are using their strong balance sheet to pick away at acquisitions. They are getting iron at very, very discounted prices. Adding rigs very, very cheaply.

oil / gas
COMMENT

This has been on his radar screen. It is involved in the service side of things in Papua New Guinea. The 2 rigs they have are on longer-term contracts. The growth will be if they get into other businesses. There are lots of rumours floating around that they are looking to make acquisitions in Canada. That is where the opportunities lie. The stock is thinly and can be pushed around with institutional orders.

oil / gas
BUY ON WEAKNESS

He likes it. They made an acquisition a couple of weeks ago. They bought assets at 15-20 cents on the dollar. He has been picking away on it. It is still early with a lot of the service companies. They are at the bottom of the cycle. When they move it will be quick and be tough to get in.

oil / gas
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High Arctic Energy Services Inc(HWO-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for High Arctic Energy Services Inc is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

High Arctic Energy Services Inc(HWO-T) Frequently Asked Questions

What is High Arctic Energy Services Inc stock symbol?

High Arctic Energy Services Inc is a Canadian stock, trading under the symbol HWO-T on the Toronto Stock Exchange (HWO-CT). It is usually referred to as TSX:HWO or HWO-T

Is High Arctic Energy Services Inc a buy or a sell?

In the last year, 1 stock analyst published opinions about HWO-T. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for High Arctic Energy Services Inc.

Is High Arctic Energy Services Inc a good investment or a top pick?

High Arctic Energy Services Inc was recommended as a Top Pick by on . Read the latest stock experts ratings for High Arctic Energy Services Inc.

Why is High Arctic Energy Services Inc 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 High Arctic Energy Services Inc worth watching?

1 stock analyst on Stockchase covered High Arctic Energy Services Inc In the last year. It is a trending stock that is worth watching.

What is High Arctic Energy Services Inc stock price?

On 2024-07-19, High Arctic Energy Services Inc (HWO-T) stock closed at a price of $0.9.