Hyduke Energy Services Inc. HYKCF

RE: Margins

[David_Adell]

2nd  quarter will be crummy too .    Natural gas prices are weak .  GM and Chrysler declared bankruptcy   and the banks were  still on a shaky footing.     Naturally  nat gas drillers  weren't   going to    get alot of service work done when they can  just pull a part off  an idle rig.  However,  in the last week   you can detect real signs of optimism. The " cash for clunkers"   policy in the US  is  a runaway success and  total unit sales   that were forecast to be  < 10 million  have already been surpassed.  So    once the auto industry  starts showing signs  of life    its  a good sign for the overall economy.  The housing  market is also stabilizing too  , and even sectors like semi conductors are starting to show signs of strength. Copper and other base metal are on a tear also.  I think  natural gas has bottomed and the smarter companies wil be gettig their rigs ready for the next up cycle. European bank  profits were better than expected too.  I can see  Hyduke  approaching where it was a year ago by October in the  60  to 70 cent range.  After that  it wil depend on whether  private investment  money starts to flow. Alot of the   activity    going on is  fueled by worldwide  infrastructure spending.   Ifl private  dollar flows start   entering the economy  ( most has sat idle so far)  then we have the potential for a real rapid return to economic expansion.  If  nat gas prices can hit 5 or 6 dollars before the heating season, and economic indicators  keep   surprising to the upside,  Hyduke may return to the dolar range within a years time.