I forgot to post that i added to my CAPD position 2 days ago. Fortunately as the trading update i was pre-empting came out early – today! I read it as good and so did the market – up nearly 10% today.
The key points are:
There was a slowdown towards end of yr, ‘but fear of decreasing capital expenditure by miners is over done here:
‘We have also received confirmation of drilling activities from clients representing approximately 90% of our forecast revenue for 2013.”
They have planned reduction in capex 2013 which was 30m this yr. So next year if revenue is anything like this years, they will be throwing off cash, enough to fully pay off the modest 22m pounds of debt.
It was on a p/e of under 4, so its still cheap. I’m aiming for this to double and am happy to hold this long term.