Back to life for my 2 to 3 bagger in 2024One last sales pitch for this week.
Looking at the the last 10 quarters Akita acquisition of Extreme Drilling finally looks to
be turning to b a very good one.
The Extreme 15 rigs are all in the Permian were there is the most shale activity.
At first, it looked like a ill timed acquisition and almost sinked Akita in 2020.
Let's not forget that prior to the acquisition, Akita was showing very good results
and above industry activity.
From 2010 to 2014 WTI was always above $100 and the energy service sector was booming
Then came a good drop from 2015 to the 2020 covid era before a recovery in 2021.
We even saw negative pricing for a few days in 2020
If you do your homework, you will see that retained earnings for Akita were 192 millions in 2016.
and it drop to a negative 20 million in 2021.
Now we are back.
In the latest quarter retained earnings came back in the green (3.7 million).
Most burned investors probably lost faith in this company and now with it's small, small
cap, it goes unnoticed.
But if you look carefully, you will see that most of the energy service sector stocks have turned around.
As i am writting, Precision is up $1.91 or 2.33%.Ensign is up 3.25% this week...
Akita was a well managed company and has turned around.It may take a few months but
i don't see any reason why it should trade at a p/e of less than 4 and at 1/3 of book(especially when book has been taken down so much).
Do your DD on Akita, it could prove be very rewarding