Not just hoping for a winner.  But almost sure of it.  Right now most drilling companies have lots of idle equipment sitting around.  Precision is no exception.  But the scene is rapidly changing.  All over the continent dry-land drilling activity is picking up and day rates are also increasing.

Precision is very cheap right now trading at a little over book value and about 12 times current earnings.  If the stock only were to regain half the amount lost during the recent recession it will have to double to CAD$16.00 from the present price of about CAD$8.00 which I believe will happen in the next 12 to 18 months.  If the price were to equal the price at the previous high of $36.00 (at Sept 2007) it will have to quadruple (or rise 400%), which I think may happen over the next 24 months. If the price were to reach half again as high as the previous high it would be CAD $54.00 which it might do over the next 36 months.

A lot of mays and mights here but it’s all possible.

All the best,

Ted Lagerway

After a broken computer and a trip to Vancouver I am now trying to find something to cheer about.  Today’s rally was a welcome change from the grind we’ve been experiencing.  However, it remains to be seen how strong it is going to be.

In an other portfolio I have added some ING Groep NV at US$7.32 to a position I already have.  This is one of Europe’s 5 top banking firms, which trades on NY as an ADR. On the net they are still showing a loss but in fact the first quarter was very good and put them in a positive earnings position.

I also own but have not yet bought more shares of ING Prime Rate Trust (PPR-N).  It trades around US$5.50 and in my book rates as a buy. The fact that they pay a 6% dividend helps make it attractive. Their Head Office is in Scottsdale, AZ., for all that matters.

On the whole I find very little to cheer about.  Although most issues I follow are presently short term oversold and due for a rebound there really are very few I’d consider cheap. On the whole I’m keeping my powder as dry as I can, but will buy selected issues on any days markets are selling off 100 points or more. I do like to buy at a discount those items on my buy list.  That includes iShares 60 ((XIU-T),  Enerplus Res. (EFR-T) and iShare Cdn Energy (XEG-T)

Until next time,

Ted Lagerway