Canelson Drilling Inc CDLRF

CDI named top pick May 17 on Market Call

[BG20]

CDI was a top pick of Jeff Young's on Market Call yesterday. Good to see this.

Here's the video https://watch.bnn.ca/#clip929213

[bonjovi501]

Yeah put as top pick on BNN and then do a share offering. Oh well a little blip and we will go higher. Should have grabbed more around $4.40 a little while back. Good management and good company. Solid!

[elmothefearless]

The share offering will be a good thing.  They definitely did not need the money.  However this is going to bring in some institutional investors, likely with some coverage / analyst reports and price targets as well.  This is such a well run company I would be shocked to not see the targets in the $8 - $9 range.  A little publicity is worth a little bit of dilution.

[grasshopper1917]

I disagree I dont like the share offering. I do like the company and think it is well run but I dont like the dilution. It bothers me when companies raise dividends to high levels then has to raise cash. Either you can afford the dividend and grow with cash flow or you dont raise dividends. That being said I still think this is a good company, solid operator. Im out though and going to wait to see

[grasshopper1917]

I disagree I dont like the share offering. I do like the company and think it is well run but I dont like the dilution. It bothers me when companies raise dividends to high levels then has to raise cash. Either you can afford the dividend and grow with cash flow or you dont raise dividends. That being said I still think this is a good company, solid operator. Im out though and going to wait to see

[elmothefearless]

Their dividend represents ~$4.5 million paid out monthly, they are cash flowing $25 million.  To me, a ~20% payout ratio does not constitute a "high level".   They have a nominal amount of net debt.   Seems quite clear the share offering was to bring in institutions.. not to raise cash to pay a dividend..

[puntabeach]

Agree.  As  long as  it  remains  below  25%,  it  is  ok. No  worries.  The  thing  is  that  CDI  has  to  expand  internationally   to  keep  its  growth  trajectory.