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Energold Drilling Corp EGDFF

Energold Drilling Corp provides drilling services. The company's reportable segments are Minerals, Energy, and Manufacturing. Minerals segment provides drilling services in the minerals industry for parties principally in North America, Mexico, the Caribbean, Central America, South America, Africa and Europe. Energy segment provides drilling and other services to the energy sector in Canada, the U.S. and South America, and Manufacturing segment is engaged in designing, and manufacturing of equipment for water well, mineral exploration and geotechnical drilling companies. It generates a majority of its revenue from the Minerals segment.


GREY:EGDFF - Post by User

Bullboard Posts
Comment by retep6on Jan 22, 2013 11:50am
304 Views
Post# 20872250

RE: Please Advise...

RE: Please Advise...

Two things pretty much drive this stock -- the gold price (which seems to be heading back towards $1700), and now with Dando -- the price of oil (which has recovered nicely from lows near 80 bucks to 96 today).  As long as those 2 commodities hold their current levels, EGD can keep its fleet busy.

 

The other factor holding the share price down at the moment is the $10,5 million/yr  in performance bonuses being paid to the former owners of Dando. When these payments are complete (in about 15 months), that will translate into a bump to earnings of about 25 cents/share, which should add at least $2.50 to the share price.

 

Not sure what your average price is, or how much patience you have, but I suspect that by this time next year the share price should be moving smartly higher. On the other hand, I'm not expecting any near-term improvement, we are likely to be stuck in the $3 range for most of 2013. 

Each investor to his own, but I haven't sold a single share, & I intend to stick around for the long term.

 

GL

Bullboard Posts