LEA- It's hard to imagine this dropping back to the 40s.The 52 week range is 50c-$1.34 and we are much closer to the low end rather than the high end of that. That low was hit after very weak Q2 results due an extraordinarily long spring break up last year. Sales are up, demand is strong, balance sheet is much better, and the market should be well aware that Q2 is seasonally weak.
I think that buys near today's close are a gift considering the strong outlook going forward. From the recent PR:
Leader is well positioned in the current commodity price
environment with approximately 85% of its revenue coming from horizontal oil and liquids-rich drilling
activity. Leader’s operating areas include established and emerging plays in which the underlying
fundamentals are expected to remain strong through the coming year. Leader has seen the trend toward
24-hour operations in the majority of its deep coiled tubing operations, which has improved equipment
utilization and corresponding margins. Coiled tubing and affiliated services are in high demand, and this is
expected to continue through 2012.
The majority of equipment built under the 2011 capital program has now been deployed and Leader
expects a significant increase in year-over-year revenue as a result of the increased job capacity. At
present Leader operates 6 coiled tubing units (3 rated as “deep-capacity”) and one deep coiled tubing reel
trailer, 7 nitrogen units and 3 fluid pumpers. With continued profitability, Leader is focused on reducing
overall debt levels while opportunistically increasing its capital expenditures to take advantage of growing
demand expected in its three service lines. Leader is strongly positioned to provide large diameter coiled
tubing, nitrogen and fluid pumping services to an increasing client base.
Other
