RE:RE:RE:Next week interesting - great time to buy into TCW folks and exactly where how TCW seen it, as per last quarters web conference on the Q2 results. Companies will open their wallets and capital expenditures will only grow the service line. Dan Healing, The Canadian Press, at 04:09 on September 4, 2018 CALGARY - Rising oil prices that encouraged more spending by small and intermediate oil and gas companies in Western Canada in the first six months of 2018 are expected to lead drilling budgets to grow even further this fall. Producers say last week's steady march by U.S. benchmark West Texas Intermediate oil prices to higher than US$70 per barrel, a level last seen in early July, will encourage some to open their wallets. "A lot of us spent a fair bit of our capex for the year in the first quarter, and before spring break in the second quarter, during that four-month period," said George Fink, CEO of Bonterra Energy Corp., in an interview. "With the second half now, it's a situation where, if we can stay between US$68 and $70, I think there will be companies that will potentially increase their capital in the fourth quarter and spend a little more because the cash flow will be better than most of us anticipated."
Funinthesun1 wrote: I get what you're saying but the point I make is TCW's plan is seemingly to concentrate on maintaining business steady, buying back it's share (great investment at this time - average of about $3.00 or so) and ramping up with major clients/contracts for Q3 that were pending. Clients are/were holding back on their capital expenditures but the overall feeling is that they will be investing in those wells going forward. TCW is buying back it's share because the share price is low and see it going higher, especially when the basins heat up, which they see it happening. Once the buy back is completed (to most likely go until mid 2019 IMO); profits will turn into dividents. Another 9 months (3 quarters) of buy back and maintaining steadiness and growth where/as needed (new crew/hires) and the SP will pop. One way that he company can and will raise capital when needed is in share offerings later down the road..so to put it simply, to buy them at an average of 3.00 now and to offer them later at 7.00 or so is simply good math. My guess is when dividents hit...end of 2019; a share price of 10.00 plus will be norm again. For now, TCW is not ready to pop...only day traders are making it go up and down. Mind you, blocks are being sold and bought back up by interesting players who can stay the course and are investing for revenue growth of 2019. If current conditions remain the same...barring another cyclical crash for any reason...TCW will look much different next year. As a long term holder...a drop in SP really does not effect me but I do see it going down a bit more. IMO.