Savvy Trades and Investments

[gilead23]

GEODFF CEO interview out

Having a nice up move today in both the US and Canada. I don't think that is due to the video because its a week old, but the call was pretty bullish.

They mentioned a contract in a new South American country. They have been talking about expansion into Brazil so if I were to guess that is where they are going. The geographic diversification is nice because it also diversifies the metals they target, and should smooth seasonality related to the rainy season in Africa. Depending on the size of that contract it could be a catalyst.

More importantly they said their seasonally weakest Q3 will be the best year over year comparison of the year, and an all time record for Q3 with rig utilization running around 75% versus their normal low 60's.

That sounds pretty bullish as they earned .04 last year but showed a .04 YOY improvement in EPS in Q2. I'm treating that as they are expecting .09 or more in their seasonally weakest quarter.