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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (59306)	5/20/2020 4:23:01 PM
From: Goose94	Read Replies (2) \| Respond to of 202211

Trican Well Service (TCW-T) top pick from Josef Schachter on BNN.ca Market Call Wed May 20th @ 1200ET Trican is Canada’s largest fracker, with operations in cementing and coil tubing. While the energy service industry is under pressure for the next few quarters due to low activity levels, we see activity picking up this winter. The stock should recover as investors become more comfortable with the sector. We expect the fourth quarter will see decent activity in the natural gas side of drilling due to declining production and low storage in western Canada. Trican has an excellent balance sheet, with only $52 million or 8 per cent debt/equity (equity of $582 million). It has a positive working capital of $136 million or $0.50 per share. Cash flow in Q1/20 was $13.4 million, up from $3.5 million in Q1/19 as they had tight cost controls. We’re forecasting an annual cash flow of $45 million or $0.17 per share this year. Trican has a market cap over $175 million and is very active (repurchased over 23 per cent since the start of their normal course issuer bid), using free cash flow to buy shares. During Q1, it bought back 4.76 million shares for $5 million at an average price of $1.04 per share. Our one-year target is $1.50 per share. We have an SER Quality Score Rating of “B.” Buy on weakness.