RE:UNLOAD watch yor steps uncertainty ahead
Let's review a recent deal in the energy space as an example of value investing. LII CN, Logan Intl, a provider of tools/solutions to oil service co's, 6 months ago you couldn't give the stock away, low vol, as it was pushed down as low as .40 and settled into the .70-ish area. @ .70, it had a market cap of around 35 million Cad, was carrying 53 million in debt, god-awful debt to equity ratio. Along comes Rubicon Oilfield who pays 1.59 a share, full assumption of debt.
There is tremendous value in the canadian energy services space. Clarke, CKI CN, has been acquiring oilfield service companies for the past five Q's(all detailed in the filings) They being a private equity outfit, only have to disclose a holding once it goes over 10% by law. We were involved in Bonnets Energy Svcs along with Clarke during the last cycle. They built a position over several years which peaked at 25% in 2011 and held until the company was acquired by private equity in sept. of 2013.
Need to have patience, build positions, have a 2-3 year time horizon on ESN and we think it is a 3-4 stock.