New coverage ? And conference call nuggetBMO anylyst was on the call. First time I hear him on a call and nowhere do i see a mention that BMO follows OGD. OGD might pick up some coverage ?
His questions were 2 i wanted to inquire about : in Canada do you have fixed cost contract and cannot increase rates (bleeding money and no hope in sight). Answer, there is always a delay to increase rates which is normal. And budget for 2022 are underway which is shaping to be a great year.
I might be suffering from confirmation bias as I am long this stock but Foraco CEO was mentionning the same thing on his conference call. And GEO was mentionning that 2022 should be exceptionnal. Furthermore, the wage increase excuse is not bullshit, see this article dated from October https://coringmagazine.com/article/labor-shortage-canada/
Next question was on International, OGD confirmed that they expense their mobilisation costs instead of capitalizing them and amortizing them over the life of the contract. As pricing for rates should include these costs that are getting expensed right away, international results should be pretty good when they start/resume drilling.
And a private investor commented on the size of their fleet : 50% more rigs than at previous peak cycle with the stock trading at 1 versus 6 with a 15% dilution. Translation, 10 bagger potential.
So what is the downside ? Say 0.50 if we go in a down cycle right away ? Pretty good odds for me.
Do not know if I am missing something but seems to me that the future looks bright. Very bright.
GLTA,