Hyduke Energy Services Inc. HYKCF

RE: Increased target price

[larsen6]

Hard to say. Yahoo lists Wenzel and Innicor as comparable businesses. In March, Wenzel announced 2006 results of $0.16 cents per share and is now trading for $1.40, for a P/E of 9x. Their 2006 EPS fell from $0.21 in 2005. They have a note in their earnings report saying that the lost nickel a share was a one time occurence. I am leery of this as it looks like they were trying to hide profits in the Caribbean. Innicor announced 2006 results of $0.16 per share and is trading at $1.70, for a P/E of 10.6. Their 2006 EPS was flat versus 2005($0.16/share). So here we are. Let's say the industry is treading water, i.e., the earnings will be flat this year. And let's say that the industry has a 9.5x handle. At a price of $2.00 per share, HYD will need to earn $0.21/share in 2007 to stay where it is. Dividing by four gives us a $0.0525/qtr target for our earnings to be released later this month. Proviso: this is super back of the napkin stuff here. I have not looked at even the debt of these three to see who is leveraged the most/least. And finally. I think I said $0.11 cents a share a couple of posts back. Admittedly, it looks like I was a little over zealous in this estimate. If they can do 6.5 cents or better though, we should still be off to the races. GLTA, Larsen6