I'm sure you've looked at Essential Energy (ESN.to) as part of your energy basket. They're one of the major coiled tubing companies in western Canada. It seems similar valuation (trading around 1x peak CFs and net-net), and they're repurchasing some shares. One thing that is concerning though, is that their coiled tubing operations seem to have been underperformed Trican and STEP in the last couple quarters. Any thoughts on this one?
I haven't looked closely at ESN for a couple of quarters. I lost interest in STEP, TOT, PHX, etc when oil went well above $100 and analysts were tripping over themselves to share higher and higher price targets. I'll take a look again. Do you like any of the other energy service cos?
I also own a small position in Titan Logix, which makes liquid level sensors in crude tanker trucks. The sensors prevent overfilling and spills, and should presumably fit into the general telematics trends.
They have the dominant share in their specific market, EV is approximately nil, and their business is just starting to recover and generate FCF. I understand large companies like Emerson, which is a major player in the stationary sensor market, don't compete in mobile crude tanker sensors because the market is small (maybe $10-20m/year total market size, depending on where you are in the cycle) plus these sensors are primarily sold through tanker OEMs/dealers which are extremely fragmented, so it isn't worth the time and headache to a large company. Note Titan is sitting on a lot of cash, but they plan to use an undetermined amount for new product R&D in other markets (ie, refined fuels, liquid chemicals, etc) and so it's unlikely they'll just return that cash to shareholders. The new CEO seems like an upgrade, so hopefully it is spent wisely.
I'm somewhat familiar with a bunch of other services companies (some of which you also know, such as Pulse), but Titan and Essential are the only ones I own.
I'm sure you've looked at Essential Energy (ESN.to) as part of your energy basket. They're one of the major coiled tubing companies in western Canada. It seems similar valuation (trading around 1x peak CFs and net-net), and they're repurchasing some shares. One thing that is concerning though, is that their coiled tubing operations seem to have been underperformed Trican and STEP in the last couple quarters. Any thoughts on this one?
I haven't looked closely at ESN for a couple of quarters. I lost interest in STEP, TOT, PHX, etc when oil went well above $100 and analysts were tripping over themselves to share higher and higher price targets. I'll take a look again. Do you like any of the other energy service cos?
I also own a small position in Titan Logix, which makes liquid level sensors in crude tanker trucks. The sensors prevent overfilling and spills, and should presumably fit into the general telematics trends.
They have the dominant share in their specific market, EV is approximately nil, and their business is just starting to recover and generate FCF. I understand large companies like Emerson, which is a major player in the stationary sensor market, don't compete in mobile crude tanker sensors because the market is small (maybe $10-20m/year total market size, depending on where you are in the cycle) plus these sensors are primarily sold through tanker OEMs/dealers which are extremely fragmented, so it isn't worth the time and headache to a large company. Note Titan is sitting on a lot of cash, but they plan to use an undetermined amount for new product R&D in other markets (ie, refined fuels, liquid chemicals, etc) and so it's unlikely they'll just return that cash to shareholders. The new CEO seems like an upgrade, so hopefully it is spent wisely.
I'm somewhat familiar with a bunch of other services companies (some of which you also know, such as Pulse), but Titan and Essential are the only ones I own.
thanks for sharing. I used to own TLA in the past. I think you have it covered well. and I agree and the new CEO does seem like an upgrade.
How did you get 15M EV?
Currently about 55 mil EV less 38mil coming from sale of Canadian assets. plus they also received a note for 3.4 mil.