About a 3 billion-dollar market. They will come out of this year with about 22,000 barrels a day and will likely double their production over the next 2 years. They are using technology to do that. Have spent about $440 million next year on CapX. Benefiting from a big drop in the cost of drilling. Bringing on wells in as little as 8 days. They are both in the Permian and Eagle Ford basins. Have over 10 years of drilling targets going forward.
He looks for companies that are good, but are getting better. This is a company that has been going through a change in management and in focus. Changing their business model from a subscription model to a Cloud-based monthly pay. Ultimately he likes companies that benefit from improving capital spending at the corporate level. Have lots of cash and trades at a very low valuation.
Has liked the aerospace sector for a long time and this company owns Pratt and Whitney which manufactures jet engines. Have gone through a major restructuring. The other big part of their business is more focused in the non-residential construction area such as Otis elevators and climate control. Have grown their dividend 10% year for the last 5 years.