RE:CET Q4 ,2020Very disappointing results. I know revenue has come off quite a ways but I cannot understand how they can continue to not make positive EBITDA in a wage subsidy world. I had heard through the grapevine that they were busy, couldn't find people, etc. in Q1 and were looking to bump pay rates in the field to get people back. Doesn't give me the encouragement I was hoping for when they're already operating at loss levels in generally improving markets.
Referencing new dual telemetry technology as the future when they only have 1 system built... A company like Evolution Engineering probably has 50+ dual telemetry systems available just in the Permian alone.
I was optimistic that these guys would find a way to flow some decent free cash and show a good yield at the current market cap but I'm certainly re-evaluating that in light of this disappointing annoucement.
Agree with Auburn. I think if you're looking at deep discount to Book Value companies, ESN is at least flowing cash. Plus they have the downhole tool business that's probably worth near their current market cap just on its own.