Trican Well Service Ltd T.TCW

Trican vs Step

[ThirdStringBot]

Can anyone offer any insight as to why since March of this year the shares of Step have outperformed Trican significantly?

[Beaverlover]

Yup. It's a mystery, Trican a superior company to STEP in every way measurable.

[firstworld]

Probably because of the supreme arrogance TCW board demonstrates in it's calls....after being on welfare for two years. This behaviour is red flag for a failure back story. Their equipment is almost antique now. No one wants to work for them after they were so abusive.

[AlbertaOilPan]

Likely due to STEP's US exposure. Trican is a pure play Canadian, limits the torque of any upswing. STEP also has a much smaller float, as they are predominantly backed by ARC, akin to being semi-private. Makes the swings bigger 

[EstevanOutsider]

STEP was trading at a distressed valuation while Trican was trading at a premium multiple. STEP carried heavy debt and was a credit risk prior to the recovery and normalization of credit metrics. STEP's US exposure set corporate records while Q2 set a ebitda record of any quarter. Trican continues to trade at a premium multiple to STEP. STEP's outperformance is mostly based on multiple

[firstworld]

Too bad Trican sold USA and RU business both are the best performing units....dimwits.

[EstevanOutsider]

At the time, it was the US sale that saved the company so can't say it was a bad decision in retrospect. At the time the US market was also oversupplied which is the opposite now. 5-years has been a long time. They did the right thing at the time.   

[firstworld]

Typical Canadian company racking up the debt desperatly selling the best business cheap to survive short term. Always a 6 month vision thats why they all needed $400BN in bailouts last three years... Still an agrairian country like 1923.....