RE:RE:TD - Spec Buy at $0.10 remains
Agreed.
Nice report thank you for this valuable info.
Here is the link for the report
https://www.investorvillage.com/uploads/51871/files/anaug18.pdf
Outlook
U.S. activity continues to pick up, meaning Calmena's core operation (directional drilling) should deliver
incremental growth through the remainder of the year, and as tools previously deployed to Latin America
return to the U.S., further upside is possible. With energy reform in Mexico proceeding, we expect to see
increased demand for equipment, potentially on very short notice before the end of the year, and Calmena's
rigs in country seem well positioned to capture a premium for being 'in country' when the bidding begins. We
believe the company is marketing all of its assets, however in our view its rigs in Libya have no value, given
the massive political uncertainty in country and the low likelihood of exporting the rigs were they to be sold.
Having updated our asset model as well as our earnings forecast, we still believe in the magnitude of the
upside to current shareholders, however, as our SPECULATIVE rating would imply, the risk of CCAA
proceedings remains present. We are making no changes to our $0.10 target price or SPEC. BUY rating.