STOCKCHASE

The biggest issue with the services sector right now is that they have had a very good run off a very low base. The time to look at them is in the late fall period just before they get into the drilling season.

2008-07-16

Comment

30.190

Jean-Francois Tardif

2nd quarter will be coming out soon and will be ugly. 2nd quarter for the drillers in Canada is always bad. Shale plays need a lot of fraqing so these companies will be extremely busy for years to come. Outlook is outstanding.

2008-07-15

BUY

29.990

Calfrac Well Services (CFW-T), Precision Drilling (PD.UN-T), Ensign Resource (ESI-T). Involved in fracturing, an expensive exploration/production service, which basically fractures rocks to release petrochemicals. With higher natural gas, companies are starting to use this service. Bullish on natural gas. These companies can be very cyclical and will fall off the table when energy prices weaken.

2008-06-10

TOP PICK

26.760

David Burrows

Pressure pumping company. Focus on stimulating wells. 83% of revenues come from fracking. Great demand for fracking in Canada as well as US. Utilization rates are going higher. It’s an extended cycle.

2008-05-22

BUY

26.820

Numbers for the first quarter were not good but would hope the numbers over the remaining year would be good.

2008-05-16

BUY

24.550

Jennifer Stevenson

One of the bellwether type energy service stocks in Canada. Service stocks where pummelled in the market until recently. Had a significant run-up recently but this is the first leg of a multiple leg up. They have taken advantage the focus in Western Canada on drilling multistage horizontal wells.

2008-04-25

SELL

21.340

You would want to sell at significant position at this point. There wont be tremendous upside at this level.

2008-03-25

DON'T BUY

21.300

Bill Harris, CFA

Great company. Feels that Trican Well Service (TCW-T) is a slightly better company. Feel that these stocks have the ability to come off still.

2007-06-25

BUY

24.500

Jeff Parent

If you use a 50-day moving average, which shows $20 it's a good point. Price moved above the 50-day moving average as well as the 200-day moving average and the 2 are crossing over.

2007-05-23

TOP PICK

22.870

Bill Carrigan

He is getting interested in the energy sector. They are all coming off Bears. This is a good leverage play on the group. Had a big run-up followed by a correction and is now trying to form a base.

2007-05-15

HOLD

19.430

In the business of fracing and enhancing flows of oil/gas in areas that have proved to be difficult. Good management. Prefers Trican (TCW-T). (See Top Picks)

2007-02-19

DON'T BUY

20.920

Gordon Higgins, CA, MBA, CFA

Does fracking treatment for mainly gas wells. Specializes in shallower wells. Thinks it will continue to be soft. Well-managed company. Has reduced his holdings. Because of the decreased need in their services, their cash flows will be less.

2007-01-16

WAIT

20.700

Gavin Graham

With gas plummeting from $15 to under $5, shallow gas drilling has been chopped by a third in western Canada. If he sees a pickup in demand, he will consider it again.

2006-12-07

Comment

18.460

Oil drillers are double beta in that they moved twice as much, up or down, as the oil price. Drilling has dropped off in the last while.

2006-11-28

DON'T BUY

19.450

Stephen Carlin

Trapped with a declining earnings environment for 2007. There is a potential for it to go lower should some of the oil/gas companies cut back their cap-X even further. Cautious on this sector.

2006-11-08

DON'T BUY

19.750

Larry Berman CFA, CMT, CTA

There’s no technical sign of a bottom. Nothing here to get him excited.

2006-11-02

BUY

21.000

Every time there is a cyclical downturn in natural gas, investors think there will be no more drilling. There will be, and they're giving stocks away. This includes all the drillers such as Ensign (ESI-T), Precision Drilling (PD.UN-T) and Calfrac Well Services (CFW-T).

2006-10-23

DON'T BUY

20.500

Very specialized in very good company. His big problem with this company is their fascination with Russia. Can see how they will make any money over there. There is a real slowdown in the service industry.

2006-10-05

BUY

24.850

Provides fracking services, mostly to shallow gas wells. Business has dropped off dramatically as producers have been switching to oil development. If you think that gas prices are going to spike back up (he does) this would be a good purchase. Represents a higher risk.

2006-09-08

BUY

25.310

Big demand for their services in Russia, but unfortunately they don't seem to be making any money there. Good management.

2006-08-30

HOLD

25.280

Michael Smedley

Have gone through a summer decline, partly because of gas price. Prices improve in the winter months.

2006-08-24

BUY

25.280

This has been a terrible stock in that it has under performed, but a pretty good company. This is a bargain for the more risk oriented investor.

2006-08-24

BUY

25.250

Has suffered because it is mainly a fracturing company in shallow gas wells, either coal bed methane or other shallow plays. When gas gets expensive again, this will be one of the more volatile on the upside.

2006-08-23

PAST TOP PICK

25.300

(A Top Pick July 27/05. Down 27.7%.) Some of its operations are in a high cost environment and with low gas prices companies have been curtailing their operations in that area. Still likes, but prefers Trican Well Service (TCW-T).

2006-08-21

BUY

26.650

Had some disappointing numbers come out and the stock came off fairly smartly. It's probably hitting bottom. Part of the problem is that on the Russian side, they have been getting lots of business but not making any money at it. The U. S. side has turned around. Likes their product and what they do.

2006-08-16

PAST TOP PICK

25.740

(A Top Pick Apr 13/06. Down 20%.) With more $’s being pushed out of gas exploration and into oil exploration, they probably won’t have the demand for work.

2006-06-16

HOLD

25.750

Likes this sector and Calfrac (CFW-T) and Savanna (SVY-T) are the 2 cheapest. However, he has elected to go with Trican Well Service (TCW-T) instead although he hasn't bought it yet.

2006-06-12

DON'T BUY

27.200

Has a fairly significant off shore capability and they are working in Russia which gives some concerns. Would be more inclined to buy Trican Well Service (TCW-T).

2006-06-08

BUY

30.000

Ravi Sood

Fracturing business is a very hot space. Prefers Trican Well Service (TCW-T). Feels both will convert to an income trust model in the next 24 months. Current price is probably factoring this in.

2006-05-26

PAST TOP PICK

30.000

(A Top Pick Feb 28/06. Down 13%.) Very inexpensive right now. Still likes.

2006-05-25

TOP PICK

35.420

Interesting because of the number of wells that exist. This company is involved in servicing of existing wells. The amount of money, that is going to be spent in the oil service industry in general, is enormous and growing. Still at a reasonable price.

2006-04-18

TOP PICK

33.890

Expecting to drill more wells this year than it did last year. Trading at a discount to its prime competitor Trican Well Service (TCW-T). Have exposure to both the US and Russia.

2006-04-13

WAIT

34.050

This is a soft time with natural gas, but might be an opportune time to pick some up in advance of the winter when drilling increases. Would hold off until September.

2006-04-05

BUY

31.300

Has done poorly because gas prices have been down, so producers have cut back on their spending in the service sector. An ideal entry point as gas is much more likely to go up from here.

2006-03-22

BUY

31.250

Gavin Graham

A lot of drilling can only be done when the ground is frozen and also oil prices go down in the spring, so the stock has come off. This company has the technology to get the oil out. They will continue to be a winner, so don’t worry about the sell off.

2006-03-20

BUY

31.250

Wilf Gobert

Specialist in natural gas well fracturing. This whole business is so strong that he would both Calfrac Well Service (CFW-T) and Trican Well Service (TCW-T).

2006-03-20

TOP PICK

33.850

Well managed company. It fell 30% as nat. gas prices fell. Believes that natural gas prices will go back up because the reserves are depleted. Terrific entry price. Should get in at $34 or $35.

2006-02-28

WEAK BUY

39.200

This company fractures oil and gas formations, to allow the gas to flow. It's a good company, but he favours Trican Well Service Ltd. because it has a broader base work in Russia.

2006-02-20

BUY

43.730

On coal bed methane would go for a service company rather than a driller.

2006-02-03

PAST TOP PICK

43.500

(A Top Pick Nov 7/05. Up 20%.) Its focus is primarily on the resource oriented companies. That's where the growth is. Would still buy it.

2006-01-25

BUY

40.920

They use a process of high propellant inserted into a well forcing the product out. This is one of the better companies in this area. As long as oil/gas companies have excess capital, this company will continue to do well.

2006-01-18

TOP PICK

37.500

Has a market leading position. It also specializes in where energy/gas is being found. Tends to have higher day rates than regular drilling companies and has had a bit of a set back due to wet weather so it's a nice entry point. Reasonably priced.

2005-12-01

HOLD

34.750

Werner Muehelemann

An oil service company. Have had 2 bad quarters in a row due to being in an area that was very wet and were'nt able to service. Feels it's just a short term event. Very good company and well run.

2005-11-21

TOP PICK

36.000

2005-11-07

HOLD

38.800

Joseph Schachter

Doesn't follow this sector. The industry of oil services is one that you want to be involved in. In the cycle of the next 3 to 5 years they will have immense pricing power which means immense profit expansion.

2005-09-26

BUY

38.000

Have sold some deep coiled tubing units to Russia. It isn't incredibly cheap on a cash flow multiple basis, but where the world is going as we start to look for sources that are harder and harder to find, in this case natural gas, we are starting to go into coal bed methane. Increasing their revenues much faster than their costs.

2005-09-09

PAST TOP PICK

39.110

(A Top Pick June 21/05. Up 25%.) Still likes.

2005-09-01

BUY

36.800

Brendan Kyne

All the servicing names are going to do well. Having to go to lower levels for larger discoveries.

2005-08-30

TOP PICK

35.800

Trading relatively cheaply compared to some of its peers. Growing its earnings per share over the next few years at about 25% compounded. Extremely strong growth. A big catalyst for the stock is it makes all the unconventional gas wells work which gives them higher day rates for that sort of work. Not cheap at 8 X EBITDA.

2005-07-27

TOP PICK

31.000

Drilling in Western Canada is increasing in a search to get more and more natural gas/oil. These are the guys that make these wells work as well as making the unconventional wells work. Rates are going up because of demand. Working on coal bed methane and some of the tight well formations. Have a 25% market share. A bit pricey.

2005-06-30

HOLD

31.970

Fred Sturm

Business outlook for them is very strong. The rigs are in high demand. Doing tremendously well and the stock has reflected some of that opportunity, so he wouldn't expect a super charged return period without the price of oil charging much higher from here.

2005-06-22

TOP PICK

32.000

Gordon Higgins, CA, MBA, CFA

On his WATCH list. There's a lot more drilling going on.Well drillings have grown from 21,000 to 23,000 this year. This company makes unconventional wells work. Have about a 25% market share. Their EPS has been growing in the past year. Very clean balance sheet. Good management.

2005-06-21

BUY

28.800

Michael Smedley

Would also Buy Precision Drilling (PD-T) and Producers Oilfield Services (POS-T).

2005-05-25

BUY

31.400

Have looked at this. Trading around 15 X earnings which is quite reasonable.

2005-05-03

BUY

31.250

Chris Fernyc

Likes both Calfrac (CFW-T) and Trican (TCW-T). The pressure pumping business and the oil services industry is tremendously profitable. There's only about 4/5 players. It's very rational and necessary.

2005-04-14

BUY

34.310

A very impressive story. Compared them with Trican (TCW-T) and between the two would probably choose Trican but would be happy with either of them. Likes the service area as a low risk way to play the oil/gas sector.

2005-04-05

BUY

30.000