Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (47302)	12/12/2011 1:55:01 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67790

New Poseidon stock worth a look: Dundee Christine Dobby Nov 7, 2011 – 11:40 AM ET Comments Email Twitter inShare1 Betting on the future of Poseidon Concepts Corp.’s unique storage system for fracturing fluid, Dundee Capital Markets is taking a bullish stance on the new stock. With the spinout of Poseidon from Calgary-based Open Range Energy Corp. now complete, Dundee analyst Grant Daunheimer has initiated coverage with a buy rating and a 12-month target price of $13.25 on Poseidon. “We continue to view Poseidon concepts as a strong, emerging player in the oilfield services industry with a powerful first-mover advantage, sound and growing markets presence, what we view as an attractive and sustainable dividend, and a management team we see as being capable of leading this company going forward,” Mr. Daunheimer said in a note Monday. Poseidon has operations in two provinces and 14 U.S. states with more than 70 distinct customers and multiple patents on both sides of the border, he noted. The company’s modular tanks are used to handle liquids, like fracturing fluid and sediment ponds, used in unconventional oil and natural gas plays. Open Range launched the tanks as a fluid management business in May 2010 and announced a realignment of its operations on Sept. 6. The split into two independent entities — with Open Range continuing its focus on exploration and production in the Deep Basin region of west central Alberta — was effective Nov. 1 and shares in Poseidon began trading on the Toronto Stock Exchange on Friday. Under the arrangement, former shareholders received one post-split Open Range common share and about 0.9 of a common share of Poseidon. “Key to this realignment was the initiation of a dividend of $0.09 a month or $1.08 annually,” Mr. Daunheimer said. “Based on the current Poseidon Concepts share price, this implies a 9% current yield.” But limited barriers to entry in the fluid storing game could be a headwind, he cautioned. “Poseidon has proved to be a cash-flow generating machine and with low initial costs, we expect competition to surface at some point; although deep market penetration has mitigated this concern somewhat,” he said. Shares of the newly constituted company closed at $11.52 on the TSX on Friday, the first day of trading.