CWC Well Services (CWC-X)

(Top May 21/14, Down 80.33%) He has trimmed some. They have no debt problem. It is totally out of favour. Don’t be concerned if they cut the dividend again. It will go up again when things improve.

Talked about this in June. Liked its diversification. It had just acquired a drilling company, so had expanded from just being oil services to being more diversified. Also, had liked the dividend. Just increased the dividend so the odds of a cut in the next quarter or 2 are pretty remote. Just committed to increase their budget to build another rigging bringing them to 9. If they can sustain their activity level, it should do quite well.

We have good visibility for the next 6 quarters if they operate successfully. Above average dividend and one of the top utilized drillers. A large holding for him.

Liked this because it was just a regular oil service company. Bought Ironhorse, and they are adding to that fleet. Becoming more of a full service company to prepare themselves, for what he thinks will be a material pickup, in activity for drilling and oil field services in Canada. Yield of 6.5%. Thinks there is tremendous upside.

Excited by their buying of Ironhand which gives them access to drilling rigs as opposed to service rigs they had. Both companies shared very high utilization rates, which is a key to how oil services companies produce very fine rates of return over a long period of time. Likes it at this level.

Has transformed itself from being a service company only. With their acquisition of Iron Hand Drilling they are bringing drilling rigs in. Have a really high sustainable dividend of 7.07 % compared to others at 3%-5%. The EBITDA and cash flow growth could be substantial over the next few years. Around $1 is a great entry point.

Unique in that it is small. Were oil services and just purchased a driller. Top tier client base. No dividend, but it will be capable as it starts to grow.