CANADIAN OILPATCH / HOT STOCKS
Demontigny Devlin Investment Newsletter
October 17, 196
Bonus Resource Services Corp. (BOU on TSE & VSE), Calgary, AB,
tel: (403) 263-6777, price Oct 16: $2.80, 52 week range: $3.00-0.25.
First mentioned at $0.76 on May 15/96. The stock hit a recent high
of $3 after announcing its planned acquisition of Mountain Well
Servicing Holdings Canada Ltd. and Windermere Industries Ltd. This
will increase its fleet of oil service rigs to 53 from 21. Coincidental to
this, Bonus is raising $21 million in equity financing, which will double
the shares outstanding from the existing 12.1 million share base.
However, continued growth prospects, from a larger base, are
excellent.
Ensign Resource Services Group Inc. (ESI on TSE), Calgary, AB.
Tel: (403) 262-1361. Price Oct 16: $17.75, 52 week range: $18-4.50.
First mentioned at $8.50 on Feb 15/96. Because of the optimistic
outlook for oil & gas exploration and due to the company's expansion
of its fleet of servicing rigs in both Canada and the USA, earnings
estimates have been increased to $1.50/sh for this year and $1.75 for
1997. A stock price target of $22 has now been set.
NQL Drilling Tools Inc. (NQL.A on TSE), Nisku, AB, tel: (403)
955-6460, price Oct 16: $3.99, 52 week range: $4.15-2.50. First
mentioned on May 15/96 at $3.20. Investors are beginning to take
notice of this well-managed company involved in servicing the
horizontal and directional oil & gas drilling industry. The recent opening
of a center in Odessa, Texas will enable NQL to participate in the
renewed activity in the Permian Basin. Earnings per share are
estimated at 30 cents this yaer (ending Nov 30) and 45 cents for fiscal
1997. A share price of $5 appears reachable. |
