PESX is ready again my friend! This is crazy. .0343 DOWN 21% 52 week high $2.86. A 1000% run is coming here AT THE LEAST. Just came down from NYSE, currently trades on the OTCX, the HIGHEST TIER IN THE OTC. FLOAT TINY, notes due in 2021. UNKNOWN BUT NOT FOR LONG.
The more I research this, it is definitely a sector issue. KEG, SPN, XES, PESX, are all experiencing the same things exact things.
This should be trading around 1.75 a share if compare to similiar valuations in the industry. Factoring in EV, Revenues, Debt , Asset quality, Cash Flow, EBITDA and a host of other factors. They have the newest and best in class Assets in the industry as of today that are all contracted out currently. The price to book ratio on this stock is .3. Any value below 1 means the stock is undervalued. When this thing rebounds, someone out there is going to be making a ton of money. Patience is a virtue
I have to wonder out loud about something. When I look at this drop I see PESX, KEG, BAS, LONE, SPN, HFC, WLL, HAL … all have the same charts. From drillers to refiners, all have decreased substantially. All within the same timeframe. We are worse off at $52 oil than we were at $39 oil back in 2016. We are worse off even though PES has stated repeatedly that they can survive at $45 oil. Its debt isn’t due for 3 years. Its bonds are not due for 3 years. Operations are improving. They have more than enough working capital. Receivables outpace payables. Business is expanding. Contract rates are increasing. They are not laying off anyone. From people talking to actual workers in the field --- PESX is doing a ton of work.
Massive buy orders are coming in, but the market makers are not moving the bid price upwards. It is like they are allowing people in at these levels for a reason.
I have to wonder if this is an orchestrated takedown of this entire sector. My fundamental question is: who is buying now? Are they buying because someone knows we are going to war soon and oil may spike? When it does, will the stock price return to where it should be? Hell, book value on this stock is $1.90. I understand that the oil sector is in an extended downturn, but people really do see a boom coming in 2020 and 2021. Wireline alone is expected to be a $70 billion dollar market. If Shell is an indication, oil companies are going to start massive capital expenditures on exploration activities in 2020.
I have never seen what I witnessing in this sector. The entire US market is not performing. If you don’t believe my comments, go pull up the charts for all the companies listed above. Look at them. They are essentially the same. Whoever is buying in today, may be extremely rich in a year or two because they are getting in at rock bottom prices now.
Book value of this stock is $1.90. The selloff is in the entire sector. Go look at Superior Energy Services
Be careful. Dont short too much because one day this could go up 30 or 40 cents and you will be caught. This stock is tremendously undervalued.
Are the institutional owners (74% of ownership) generally restricted to stocks in the SmallCap 600? Is it really that urgent for them to sell off at such a loss just because it's not part of the SmallCap 600? It's not like it has been delisted.
The OTCQX Market is the top tier, with the most stringent entry requirements. According to OTC Markets, companies trading on OTCQX must “meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, be current in their disclosure, and have a professional third-party sponsor introduction.”
Over 400 companies trade on OTCQX, including Swiss pharmaceutical conglomerate Roche (OTCQX: RHHBF) (OTCQX: RHHBY) (OTCQX: RHHVF), the French global communications company Publicis Groupe S.A. (OTCQX: PUBGY) (OTCQX: PGPEF) and Grayscale’s Investment the Bitcoin Investment Trust (OTCQX: GBTC).
Is the SEC going to look at this stock being potentially naked shorted? It's a small float and seems like a lot of long-term investors in it, so how is the shorting skyrocketing? Wall Street has a major hard-on to take out the oil/gas sector and this is yet again another example of it. This will be SHORT SQUEEZED OUT SOON.
Reasons to take a deeper look into this.
1. they chose OTCQX when delisted from NYSE. this is the highest tier on OTC with high and stringent requirements. one being company cannot be on the brink of bankruptcy.
2. debt isnt due til 2021, so there's ample time work on refinancing/restructuring or some kind of deal.
3. they made the semi-annual interest payment back in September. I doubt any company would make a multimillion (about 9mil) payment if that was the case. CLD did not make it (1mil+); KEG did not make it either. Their debt was due in 2021(250mil), interest payment was 625k per quarter.
RESULTS FROM 10Q
Well servicing revenues increased 3% sequentially, and gross margin was 29.4%, up from 28.7% in the prior quarter.
International drilling fleet was 71% utilized and generated an avera
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