Saturday, November 22, 2014

Recent Trade

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This last 2 week I made a quick trade. I did not expect to be in and out so quick. To be honest, I was surprised the trade moved in my favor.
    I purchased 300 shares of Precision Drilling at $8.75 on November 13, whose ticker symbol is PD.TO Yahoo Finance. 
 Precision Drilling Corporation is Canada's largest oilfield services company and one of the largest in the United States. Precision also has a growing presence internationally. Precision provides contract drilling, well servicing and strategic support services to customers. Precision supplies on-the-ground expertise - people, equipment and knowledge - to provide value to our customers on a daily basis. - Investor Relations

The last quarter ended on Sept 30 and the also recently announced a dividend increase of 17% to their fourth quarter dividend. Some highlights of their recent earnings release are:
  • Revenue in the 3 months ending Sept 30 increased from $488.45 million in 2013 to $584.59 million, which represents a 19.7% increase over last year.
  • Revenue in the 9 months ending Sept 30 increased from approximately $1.463 billion in 2013 to $1.732 billion, which represents roughly an 18.4 % increase.
  • Net earnings increased 79.4% from the 3 months ending Sept 30 as compared to the same time in 2013.  Net earnings increased 19.4 % from the 9 months ending Sept 30 as compared to the same time in 2013.
  •  Diluted Earnings per share in the 3 months ending Sept 30, increased form $0.10 per share to $0.18 per share, which represents an increase of 80.0% increase.  Diluted Earnings per share in the 9 months ending Sept 30 increased $0.43/ share in 2013 to $0.50/ share in 2014, which represents an increase of 16.3%
  • Average contract drilling rig fleet in 3 months ending Sept 30, 2014 was 335 which represents an increase of 2.8 %.  This is the same for the 9 month period ending Sept 30, 2013

         I sold my shares at $9.02 on November 17, as my limit order was filled.

         Summary of transaction
          Cost of shares = 300* $8.75 +$4.95 commission
                                  =  $2629.95
          Proceeds of Disposition = 300*$9.02 -$4.95 =$2701.05

          Profits = $2701.05-$2629.95 = $71.10
          Total Return  = Profits / Investment
                                 = $71.10 / $2629.95
                                 = 2.703 %.

Click on image to enlarge

Over the last few months, Precision Drilling as seen it's share price decline due to ongoing world events that cause people to fear certain types of companies.  These events include such things as Ebola and what is going on in Ukraine and Iraq .  The  price of barrel of oil has dropped a lot and is currently as $76.72 a barrel, according to As the price of a barrel of crude oil drops it will eventually lead to a slow down in the oil and gas sector.

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     I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.  Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk

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