OTCPK:AVEFF - Post by User
Post by
zadmanon Apr 06, 2018 5:53pm
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Post# 27845914
Been a while since I checked in....
Been a while since I checked in....No i haven’t sold. To the contrary, I’m buying more the past few weeks at 50-52 cents. Did a little digging and cake across an interesting tidbit. Search Aveda energy jobs - takes you to their website and shows positions they are hiring for. On it you will see help wanted signs for 4 110 Ton crane operators (one for each of their major terminals in the US). If you were around last year, you will recall that while results were very solid, margins were always hampered by third party crane sub contractors. Imagine going forward if a lot of the crane work required to move these monster rigs is done by an Aveda owner machine. This = margin expansion boys and girls. In addition, today’s rig count update was as follows:
Baker Hughes reported a 10-rig increase to the number of oil and gas rigs this week. The total number of oil and gas rigs now stands at 1003, which is an addition of 164 rigs year over year. The number of oil rigs in the United States increased by 11 this week, for a total of 808 active oil wells in the US—a figure that is 136 more rigs than this time last year. The number of gas rigs held steady this week, still at 194; 29 rigs above this week last year.
The oil and gas rig count in the United States has increased by 80 in 2018.
Maybe we are looking at a unique situation where we have improving margins on multiple levels if demand rises enough where Aveda can raise prices.
I acknowledge Q4 and even Q1 wont benefit from the cranes I am referring but these guys have a pretty terrific story to tell looking forward. By all means feel free to wait for Q4 reporting, maybe you will get lower prices but I’m not so sure so I’m adding now. Good luck with your investments.
Zad