Cathedral Energy Services Ltd T.CET

Forward Thinkers Vs Those Who See Only Present Realities

[auburn2]

This is what separates people who make big money in markets from those like Adonis who see what is right before their eyes rather than the potential and opportunity of what is to come.

[Adonis1411]

You call yourself a forward thinker and an "experienced market participant" and then immediately discredit yourself by talking about this as having been an $18 stock in 2008. AOL used to have a $200 billion market cap as well you know. Markets change, companies change, sectors fall out of favor. In 2008, CET had: - a flowback division that at one point generated $30+ mil of EBITDA

[auburn2]

You have some facts in there, but much is incorrect as well. Evidently you have an agenda, and I don't mind you pushing that agenda here. Regarding your claim of 2018 EBITDA being zero, that's not what the annual report says: https://www.cathedralenergyservices.com/wp-content/uploads/2019/03/2018-Annual-Report.pdf Regarding the death of liquidity, that wasn't true in late 2017 when the

[Adonis1411]

You're right, they present EBITDA for the year of just over $12 million. That said, that number is inflated by $10.6 million from a gain on sale of equipment from lost-in-hole equipment. Yes, this captures cash coming in the door, but in no way factors into the actual cash flow of the business as this equipment needs to be replaced for them to maintain their ability to generate that level of

[C32BTT]

You both have good points.  I'd just like to add CET in comparison to some other OFS companies seem cheaper in terms of the current trading price compared to their bookvalues.  Currently, CET trades at $0.15/$0.97=15% of BV, PHX trades at $1.96/$2.66=73% of BV, TCW trades at $1.34/$2.01=66%, and CFW has a negative BV of -$0.56 yet it still trades at $0.305.  All those companies

[auburn2]

At the bottom of bear markets the more illiquid names tend to trade at steeper discounts. STEP also is a gauge on US activity and is recovering nicely.

[Adonis1411]

Your points are fair. Only thing I'd note is that PHX is highly profitable and a 1-2 market player (between them and Pacesetter/SLB, IMO) in Canada and a top 6-8 player in the US. CET probably #4 in Canada and #12-15 in US market share, with lower overall profitability.  TCW is #1 in Canadian frac in an improving market from a competitive standpoint. STEP and CFW heavily over-levered

[auburn2]

Maybe CET will require a true bull market to be "highly profitable," but I think that market is coming. As well the margin of safety is good because of its discount to book value, and the market cap is very small. There's a lot of leverage here without a lot of risk IMO.