Precision Drilling

PD-T

They're in a rough business (oil) that won't turn around for a while. But you can make money on bounces like today.

Doesn't like it. Carries heavy debt from recent acquisitions. The 10-year chart is very negative. The oil industry is shifting to fracking and using PD's drilling less and less. You buy this if you think oil returns to $100. He believes oil is rangebound at $40-80.

They have done a good job. They are knocking debt down. The problem is that the rig count coming out every Friday is coming down from where it was a year ago.

Huge debt load, but is on his watch list. It could be a tax loss seller. The sector has been beaten down. It could be a good sign for investors though. Look at what investors are doing and you'll see that it might not be time.

Revenues up 9%. US side doing well. Paid down debt in first half. Cheap. Q3 won't be much better. More debt than people like. For risk-oriented accounts, could go higher. He has a $5 target. When recovery comes in Canada, they're the pre-eminent driller. No dividend.

(A Top Pick May 30/18, Down 52%) It is not working out at all. It still has potential in the portfolio and he has not bailed out of it. The leverage on the industry is huge. It is a high risk / high reward play. The payout down the road on a small part of your portfolio could be quite huge.

They have been decimated. They are the same price as in December but oil has gone up. They paid up a ton of debt since December. The risk/reward is there to buy this name. (Analysts’ price target is $4.63)

He does not own any drilling stocks. He thinks producers are not as focused on increasing production at this time. This space is too volatile to take a position in. He would prefer to own producers.

They've had a good rebound. He has a $4.50 target as a buy, but the sector is weak. Doesn't own any operators now. Buy the oil producers instead. If you own this, then average down. They just announced the sale of non-core assets, which he likes.

There's considerable upside, but the street is very split on this stock. It's a high-risk/reward stock. This could pay off very well at current prices. They just renewed some contracts and have paid down some debt. In a better oil market, this would be much more valuable.

He did a bit of tax loss selling in this sector. You can see that the $3 level is going to be problematic. It touched it in 2017 and a couple of times in 2018. It will bring in more sellers as it gets closer to that level. It is going to try to revisit the $2.26 low. If it gets through $3 it may get to $5.

All the drillers have under performed. This is probably a good entry point -- around 5 year lows. He does not love the sector, but the risk reward is enticing. He owns PD-T right now instead. He would recommend taking money off the table if the stock price strengthens due to the volatility of the energy sector.

It's been in a tough sector for the last couple of years. If you are going to buy these things you should look at it as a trade instead of an investment. You can get a reasonable trade out of some of these stocks. Until we get the pipe and we can sell stuff how much drilling can we do.

PD has done relatively well, considering the drillers have been hammered in this sell-off. Need to see this hold at $2.80. There's been heavy tax-loss selling in oil. Don't step until January. See if resistance holds.

He hoped they would merge with TDG.UN-T. He had TDG.UN-T on his action alert buy list. Now you have to decide what to do. PD-T is paying down debt but it is still high. The balance sheet is strained The stock price is now washed out enough that he is taking a little bit more positive view of this stock.