RE: FEEDBACK from the company There is alot of excess capacity in the South American market. Alot of idle rigs or refurbished rigs being "marketed". Q2 was worse than Q1 sequentially and Brazil is really slowing down. The US and Canadian markets are finally showing signs of strength and thats why CFW, TCW, SVY, and PD have responded well lately.
You dont understand the complex intracacies to make informed decisions. These guys made money in oil and gas when it was easy to. Now they are older and not the mavericks they used to be and the markets are more competitive than ever. Any slowdown in South America this company is toast. The debt is way too high and the interest too ( LIBOR plus 6.5 % ) is extortion rate. There are way too many companies out there will less debt, organic growth, lower interest costs that can easily outmanouver TID in most of the markets they contend with them in. That is why there is too much excess capacity out there now and if another shoe drops in South America the high debt, high interest wil bury them > In addition its only the 1500 HP or greater horizontal rigs that are indemand. The vertical rigs are useless in South America where natural gas is both tight and scarce. That is why they want more capital to get newer stuff. The problem is too mcuh of the fleet is old and they have to pay too much interest costs on thew new stuff.Hence the sell off at big volumes. This is ok for a small speculative position or a swing trade on the resurgence of South America but the facts are that South America is slowing down faster than China.