Cathedral Energy Services Ltd T.CET

one line says it all in press release

[Possibleidiot01]

"it could negatively impact Cathedral's ability to continue ongoing operations."

Second line  adds to that -"Subject to market conditions and actual results, it is possible that the Company will be required to enter into discussions with its lender to amend the revised covenants under its credit facility."

These lines just above outlook in the release.
Remember Miracle Max in Princess Bride?

[auburn2]

Market cap is $6 million. Current assets well in excess of current liabilities. Very low long-term debt. Aggresive cost cutting measures. The stock eclipsed $10 coming out of the 08 financial crisis albeit at that time it bottomed at just $2. That $2 trough was hit in late 2017 after the financing with Wilks. Most of the sector is much worse off than CET. Apart from ESN and HWO, which relative

[auburn2]

"Cathedral’s management team has navigated through previous downturns and we expect to do the same this time." "Operationally, our team has been executing on our Better Performance Every Day mantra and setting record drilling results for our clients.  Those successes have and are expected to be, leveraged to attract new clients." They do need to get EBITDA up, but

[Possibleidiot01]

You are making some good points ; to put it simply the news release  gives readers hope and caution. Years, back , I invested in a company , Gasfrac Services  bought by Step Energy in 2015, that collapsed and was sold for pennies on the dollar ( 10% -20% of book value) . So , the book value argument....... and hence my caution. In 2015 the oil industry was much healthier. You mentioned

[auburn2]

Regarding MCB, there's about $13 million more shareholders' equity here even after a series of impairments that can quickly reverse in a better market, and a significantly lower market cap. Much more leverage to improving conditons as evidenced by the climb to over 28 cents in early June, where shares for sale even at those levels were hard to come by. If you aren't following their

[Possibleidiot01]

I've been spending my time looking at both companies LinkedIn pages and long term comparision stock charts. In view of what you are saying about CET, I am interested if you are buying shares or holding on to shares you already own? I did own CET a few years back, For MCB , I owned , took tax loss and rebought. Secondly , what do you hope happens with the company? Market is full of opinions

[auburn2]

Quite simply the thesis is superb operational leverage and low financial leverage and low risk. It's tightly held, so it's tough to accumulate shares, and performance beyond temporary pops is dependent on Permian activity meaningfully ramping up. Yes, I hold a position. I like to buy when bigger blocks are exposed to avoid chasing up the SP. I've also been buying HWO and ESN. HWO is

[auburn2]

BTW, lest you think a recovery in the services sector is too far away, take a look at the charts coming off the bottom for PHX and especially TCW. TCW has been supported by a large shareholder and is a premium first mover, but the rest should follow.

[auburn2]

TCW with $300 million of market cap reported: "Adjusted EBITDA for Q2 2020 was negative $6.8-million, which includes recognition of $5.0-million from the CEWS program, and a $900,000 recovery from previously impaired trade receivables that were collected during the quarter." So the market is looking forward, and I see debt-leveraged STEP, SES, and PD moving as late as well.

[Possibleidiot01]

You foresee a sector recovery ; are there any losers in this scenario? I coul dsee value in PD at this price but no return to historical share value , $10.

[auburn2]

I just focus on small areas of life. I'm not concerned with all the losers or the details of situations I don't care to follow. Regarding the recovery, see this: "Click" Natural Gas becoming critical: https://www.investorvillage.com/groups.asp?mb=19168&mn=285748&pt=msg&mid=21027993 Natural gas is showing robust strength, and these services companies aren't