February Presentation Not sure whether it's been posted here or not, but I was bored and flipped through their February Presentation. Some interesting details:
-33% (of 400 tanks) utilization rate is expected to fund the dividend. I see a far greater utilization rate this year though, so I think we will surely see a dividend hike this year. Heck, they already have enough contracts signed up for in 2012 to fund the dividend at current levels. Any more contracts will be a bonus.
-On slide 16, you can see at what stages of the E&P fluid cycle PSN is involved - My guess is that they are going to become involved in fluid preperation, water treatment and water disposal next, and then perhaps the rest later on. An early slide clearly says they are aiming to evolve into a bundled provider of fracturing fluids solutions & services.
Also, to weigh in on the discussion over whether PSN will experience a pullback or not...that's obviously possible. But if it happens, I am concinved it will happen because of external events i.e. Europe falling apart or negative job reports or something like that.
If you want to see the strength of this stock, just remember how the share price behaved on the day the financing was announced. I'm sure there were some smart shorters thinking the share price would fall and hover around $13 until the financing was completed only to find out that the SP bounced back strongly and finished in the black the same day. I think that's really all you need to know re: the strength and demand for PSN shares.