AKITA Drilling Ltd T.AKT.B

Akita Drilling Ltd. Price Target Raised to C$3.75/Share

[lifeisgood1010]

I haven't post on this board because there was nothing to say about Akita.

I still hold my 97600 shares(Who cares).In such a slow drilling market, i was expecting a small loss yesterday just like Ensign.

EPS of 7 cents is not the end of the world but for them to make a small profit in such a tough market is for me a good sign.

Will i was early in building my position , i still believe that Akita will reward me by being patient.

I still think that it's a 2025 story and i could see my investment doubling and more.

For now, it could be dead money but for the long term ,i am a believer...

But for that to happen, we will need better activity in the sector.
If they can reduce their debt at their 50 million target, that to could be a catalyst.
The double capital structure should be abolish but i don't expect that to happen.

PD, ESI and Akita management comments seems to be positive for stronger activity in H2.
That we shall see.Only time will tell.
But if this come to fruition then these drillers will see their share price appreciate quite a bit.

ATB Capital raised their target price this morning to $3.75 on Akita

[blindpig]

ATB I think is the only one that covers Akita. They are also Akita's banker and did give lots of covenant relief before and during Covid. They treated Akita pretty good being a government owned Alberta bank. I also couldn't of seen them closing Akita down being a Southern family controlled company (by votes anyway). I wish Akita in the short term  would trade at even half ATB's

[lifeisgood1010]

Thanks Blindpig for the info. on ATB involvement with Akita Couldn't agree more with all of your comments. For Akita to be bettter valued at least one of the things you have mentionned will have to happen. In the mean time, i will say it again, my investment in Akita, is stuck in the mud. It will require patience and that i have a lot. Have a nice day.

[Hockeyz]

It is amazing that the analyst for Akita (Akt.a) can increase his target price by 39% (from $2.70 to $3.75) and the Akt.a stock only goes up by 2%, from $1.46 to $1.49.  Usually, if the analysts increase their target price by 10%, the stock goes up by close to the increase of 10%.  But a 39% increase in the analyst target price of Akt.a. should result in at least an increase of 25% in

[blindpig]

This target is probably based on Akita getting a similar valuation to its peers, which is not going to happen as long as long as this dual share structure exists  The Southern family controls basically 100% with less than 20% equity worth a mind boggling $10 million. Chump change for them. This raises the question. Is there an alterior motive for them to keep this control? Below is a link to

[Hockeyz]

The target prices are from analysts that follow these companies for a living. They know many many times more than I will ever know about the companies. The Akita target price is based on everything they know about Akita and its future prospects at that date, including the dual share structure. The analyst believes that Akita shares will reach $3.75 over the next 12 months. Also, Akita’s

[blindpig]

I do hope you right and I'm wrong.  Back when Akita's share price was above $10 and much higher it was "drill baby drill" and oil was a part of everyone's portfolio. That's not the case anymore. Rigs in Canada don't get more than 50% utilized even in peak times.  The oil industry is generally despised and those that do invest pick larger liquid companies

[Hockeyz]

It is really noticeable over the last 7+ years. Again, Akita has always had the dual share structure. At the beginning of 2018, the PD (Precision Drilling) stock price was 76.2, 10X the Akita stock price at 7.61. Currently, the PD stock price is $96, more than 66X the Akita stock price of $1.45. The PD stock is up 26% since 2018, while the Akita stock is down 81% since 2018. This does not seem to

[blindpig]

You'd have to go back much further than 2018 to see the explanation.  Both PD and AKT have had portfolio ruining falls of more than 90% off their all time highs. Only PD's crushing drop occurred before 2010 from $1000, and can be partially explained by their expensive buyout of Grey Wolf Drilling that diluted their shares and added a pile of debt that they're still digging out

[Hockeyz]

So if we can get back to the “drill baby drill” times then we should see the Akita stock price get back over $7/ share. That would mean going from the current 50% utilization rate of the drilling rigs to over 80% utilization.   If the Xtreme purchase was the main reason for Akita’s low stock price, then what if Akita would not have purchased Xtreme in 2018, considering that PD (Precision

[blindpig]

The purchase of Extreme was almost like "dammed if you do dammed if you don't".  There were times when the only real business they had was in the US with almost no drilling in Canada.  Akita trades at 36% of it's book value compared to 86% for Precision Drilling. Eric Nuttal had PD as a top pick so he thinks it is undervalued, and his fund owns 10%. Even if both only

[Hockeyz]

To me, the Xtreme purchase in 2018 by Akita was very good/timely. Firstly, one of the only ways for Akita to expand into the US was to buy a US driller like this, at only a 32% premium to its then current 2018 share price. Would Akita shareholders sell for a 32% premium now? I am sure not. And Xtreme was already set up in the US with offices, locations, customer base, etc. If Akita were to buy 13

[Hockeyz]

Yes, Akita’s tangible book value is $4 per share or about $160M ($4/share X 40M shares o/s). But, Akita recorded an asset impairment of $29M in 2017 and $80M in 2020, the Covid pandemic year, when oil traded negative.  This total $109M ($29M + $80M) asset impairment should almost certainly be reversed this year, meaning Akita’s tangible book value is really $269M ($160M + $109M), or $6.73

[blindpig]

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