"Expert" opinions? I went to "Stockchase" and collected the opinions of some of the BNN guest expert comments on PSN. The company is barely a couple of months old and some are calling it their "Toip Pick" while others were predicting its demise and admittedly shorting the stock. They say if it were not for the hefty drividend, PSN would have been heavily shorted by the market "vultures" already. These negative opinion seems to think that even when just one competitor enters the market PSN is going to crash.
Wow, let's not jump off the bridge yet - you not so great experts (judge by your past "Top Pick" collections). I'm really looking forward to the company's year end (Q4) results and its guidance for 2012. Hopefully that would clear up a lot of the outstanding issues in my mind. I just hope there are enough goodies in there is make those shorters of PSN jump off the bridge for a chnage. LOL.
Experts who have talked about Poseidon Concepts
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| SELL ON STRENGTH | 13.220 | Michael Decter | Has had a good run. They found a lovely niche. Water tanks. You use a lot of water in fracking in western Canada. Highly profitable. The concern is that there are a lot of other oil service companies and PSN does not have a patent on the water tank. They have quite a following, increased the dividend. He has been short in it at various times. The concerns are when competitors start to offer a water tank; their margins will come down. Take profits as it goes up because it may not last – a quarter or two and then a day of reckoning. | 2012-01-04 | |
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| BUY | 12.500 | Peter Imhof | Specializes in tanks for fracing fluids. Have done a great job in signing new deals. Great visibility. Very good yield at about 8.5%. | 2011-12-29 | |
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| TOP PICK | 11.400 | Dennis Da Silva | Produces tanks for fracing fluids. Have a patented fastening technology. Saves 80% in time in terms of mobilization and demobilization. Expect it will be a takeout candidate within a year. Almost 9% yield. | 2011-12-15 | |
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| Comment | 11.310 | John O'Connell, CFA | Manufactures tanks to store fluids, oil and water for fracing during drilling for wells. They rent the tanks out and it's paying very well right now. There are no barriers to entry to this business so be careful. They are paying a very high distribution. | 2011-12-08 | |
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| HOLD | 11.450 | Eric Nuttall | Trading at about 6.7X EBITDA, which he thinks is a very conservative guidance. There are better values in some of the fracers that are trading at about 3.5X and drillers trading at about 4.5X. What is supporting the valuation is that they are paying a very healthy dividend. If you like the dividend then Hold. | 2011-11-30 | |
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| BUY | 10.550 | James Hodgins | Manufactures tanks for fracing fluids. This is truly one of the few growth areas in the market right now. Doesn't see any slowdown. A lot of momentum and there is positive change going on. (Also see Top Picks.) | 2011-11-24 | |
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| TOP PICK | 11.560 | Jim Huang | Have a new way of designing storage tanks for the fracing industry. Environmental foot print can be pretty big. Can grab a huge market share and the stock can easily double. | 2011-11-14 | |