Q2Talked with Jason Krueger. He acknowledged that Q2 was disappointing. He says that he thinks they did the right thing by retaining staff and says business has been flat out since 7/1. In fact, they could use more equipment and people than they have. Still seeing lack of trained staff as the choke point for the industry so they are not rushing out to get financing to increase their capacity.
They see 3 busy qtrs ahead and plan to fund 2012 capex from these next three qtrs. Gross revs for Q3 should be similar to last year, or about triple Q2.
Obviously it could be a long wait for investors because the proof of his statements won't come until 11/15 when Q3 is published.
I asked about the staffing issue and he said the additional staff was focused on gearing up for the third coiled tubing unit that is now generating revs.
Leader is monitoring industry capacity in coiled tubing to prepare for the glut of equipment that typically plagues the industry at the peaks. He feels the peak is a couple of years away at this point.
I am going to hold for Q3. I have taken a round trip on my shares and ridden from my avg cost of .75 to the peak of 1.40 and back down to now below my cost. Using hind sight, I should have sold at 1.40 and bought back now but I'll have to settle for whatever the market thinks Leader is worth after the next three qtrs.