07:44:35 EDT Tue 16 Apr 2024
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Successful Inv says buy Precision Drilling

2015-07-07 22:08 ET - In the News

The Successful Investor, in the July, 2015, issue, says buy Precision Drilling Corp., recently $8.76. The Investor and a sister publication, Stock Pickers Digest, have been in and out of three different versions of Precision from February, 2002, to January, 2015. There was also a 2-for-1 stock split in May, 2005. Assuming a $1,000 investment for each of their buys, the stock has yielded profits of $4,705 and the current $15,000 position is worth $12,474. (The position comprises $1,000 invested on Stock Pickers' recommendation, $13,000 on the Investor's and a $1,000 investment made for portfolio purposes in November, 2005.) Precision earned $24-million or eight cents a share in the first quarter of 2015, down sharply from $101.6-million or 35 cents a share a year earlier. Revenue fell to $512.1-million from $672.2-million. The decreases reflect falling oil prices, which have lowered drilling activity in Canada and the United States by about 50 per cent over the last six months. The Investor remains optimistic. Although Precision will likely lose money in 2015, it should post a small profit in 2016, and in the meantime its 28-cent dividend seems safe and yields 3.2 per cent. Buy.

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