Source Energy Services Ltd T.SHLE

Downside is the 177 million in debt. Almost 3 times the

[drunk@noon]

market cap of the company. So metrics like cashflow, earnings, per share are outstanding, one should value them per the enterprise value of 240 million. i.e q1 free cashflow of almost 13 mill, 50 million annalized is unbelievable free cashflow yeild based on market cap, but they would have to apply all the free cashflow for the next 3 years to knock off most of the 177 million in debt. Still attractive, but one should be aware of the outsized debt.

[LVtrader]

On an EV basis, every dollar they pay down in debt goes straight to mkt cap. So paying down $50mio this yr would equate to a 70% boost in mkt cap. Also, paying down debt is accreative to earnings. At 100mio EBITDA this company is still super cheap. Also, there is no float. Major shareholders and mgmt control over 50% of the shs. That leaves less than 7mio shs outstanding. And who wants to sell