Canyon Services (CYSVF)
by mmmercer | September 30, 2011 1:22 am
Any fundamental reason for the drop in price from $12 to $9 ?
Source URL: https://www.stockgumshoe.com/2011/09/microblog-canyon-services-cysvf/
Canyon Services (CYSVF)by mmmercer | September 30, 2011 1:22 am
Any fundamental reason for the drop in price from $12 to $9 ?
Source URL: https://www.stockgumshoe.com/2011/09/microblog-canyon-services-cysvf/
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I own the shares and I think there are two reasons for decline: worse than expected second quarter due to wet weather (not just them, everyone had problems in W. Canada with wet weather that delayed jobs during the snowmelt); and falling oil prices that almost always take down oil services stocks. I have no intention of selling and might buy more if prices remain this low — there does not seem to be any shortage of demand for high-capacity fracking equipment/crews in W. Canada, they just couldn’t work in the muck, which means utilization should be very high in this (the third) quarter. If that doesn’t come to pass or if pricing falls considerably, I’ll reconsider — but at this point I think the shares are cheap and I’d be much more inclined to buy than to sell.