Financial Tides -- A Stock Market Investing Newsletter by Jim Van Meerten: Precision Drilling

Monday, February 14, 2011

Precision Drilling - Cahrt of the Day

Barchart.com's

Chart of the Day - Precision Drilling Corporation (PDS)

Barchart Research Team - Barchart.com - Fri Feb 11, 6:22PM CST

Related Stocks

PDS - Precision Drilling Corp

Sym	Last	Chg	Pct
PDS	11.27	+0.16	+1.44%

The "Chart of the Day" is Precision Drilling Corporation (PDS), which showed up on last Friday's Barchart "NYSE 12-month high" list. PDS gapped higher last Friday and climbed to a 2-1/3 year high of $11.15 on heavy volume and finished the day up +5.8%. Last Thursday, PDS reported Q4 revenue of C$435.5 million, higher than consensus of C$369.30 million and said it has a strong portfolio of long-term customer contracts. PDS expects to have an average of approximately 110 rigs and 93 rigs committed under term contracts in North America in Q1 and Q2 of 2011, respectively, and an average of 85 rigs contracted for the entire year of 2011. In Canada, term contracted rigs generate from 200 to 250 utilization days per rig year due to the seasonal nature of well access, whereas in the U.S. they generate about 350 utilization days per rig year in most regions. Last Friday morning, Raymond James upgraded Precision Drilling to "outperform" from "market perform" following the better than expected Q4 report. Trendspotter (tm) has been long PDS for the past 4 months at a price of $7.12 a share. Precision Drilling, with a market cap of $2.894 billion is an innovative, performance oriented, integrated oilfield drilling and energy service company. They are committed to providing technologically advanced equipment, and expertise, a safe operating environment, and quality service to the oil and gas and industrial businesses.

How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "New Highs/Lows" page. Then we clicked on the entry for NYSE 12-month highs. A new 12-month high is a popular sign of upside momentum. Then we applied a "Custom View" heading with the Barchart Opinion ranking as one of the columns. we then sorted the list by the Barchart Opinion ranking in order to find the stocks with the highest Opinion.
Barchart's Opinion trading systems are mostly a Buy and Barchart's daily Trendspotter(tm) trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Trendspotter: Buy
Short-Term Indicators: 100% Buy
Medium-Term Indicators: 100% Buy
Long-Term Indicators: 100% Buy
Overall Average 100% Buy