Calfrac Well Services Ltd T.CFW

Kuppy

[balducci]

Kuppy's Event Driven Monitor letter just recently included Calfrac as a Fallen Angel ripe for a big bounce:

"Pressure pumping is an awful business. However, Calfrac recently exited bankruptcy where they equitized most of their debt (~$575m of debt eliminated). The balance sheet is reasonably clean and the equipment is trading at a fraction of replacement value at a time when there hasn't been much cap-ex and a lot of equipment has been cannabolized. 37m shares outstanding and 88m FD including the converts. There's nearly $1b of equipment at cost and WC offsets most of the net debt. Should be FCF profitable immediately now that the interest expense is reduced. Should trade up to equipment value on a NAV basis as more rigs are added in North America."

[balducci]

I have to assume my mention of Kuppy's commentary below was responsible for the big pop that came not many minutes later ... so, you are all welcome. :) 

[Danzel88]

Have you confirmed that their 88m FD is correct with converts?  When I read the ER I thought that FD would be around 58 million.  I must have missed something.

[balducci]

I haven't, but if it is only 58m FD instead of 88m FD, that is all the better (isn't it).  Either way, Kuppy's letter appears to get wide coverage and distribution so I'm happy to see him highlight the company. 

[Contrarian333]

88.5 m s/o fd

[Danzel88]

Agreed 58 would be better, but looks like the 88 is correct! Good to know as I thought it was less. Thanks for sharing the info! Cheers

[Priority]

You are right, besides Kuppy likely owns this one. He mentioned he added oil sercive companies in an interview one week before $CFW and $WFTLF was published in KEDM