Tag Archives: Capital Drilling

CAPD – Capital Drilling – Added

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.

http://m.londonstockexchange.com/exchange/mobile/news/detail…

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.

Capital Drilling – CAPD – BUY

I’ve bought some capital drilling this morning after Centamin CEY suspended operatinos in Egypt. CAPD do provide services to CEY but they also have many other customers. The drop of 40% seems well overdone. Admittedly this is only a quick glance but the company seems profitable, has varied customers and i expect some sot of share price recovery sooner rather than later. Additionally we do not know the cost, if any from suspended work for CEY in Egypt. My guess would be that CEY will still have to pay some sort of fees to CAPD.

In at 16.19p

Remember these are all personal best guesses with my own money. Hopefully this website will show how profitable investing has been for me. But of course it might just show the opposite :-/