Haywood Securities Initiates Coverage for Cabo Drilling (TSXV:CBE) - Video Summary Posted on www.InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, April 12, 2012 - Haywood Securities analyst Megan
MacNeill has initiated coverage on Cabo Drilling (TSXV:CBE). MacNeill ranks the
company as speculative, giving the company a sector outperform rating and a 12
month price target of $0.40, a premium of 167% to the $0.15 price on the day the
report was issued.
InvestmentPitch.com has produced a "video news alert", highlighting the Haywood
Securities research report. If this link is not enabled, please visit
www.InvestmentPitch.com and enter "Cabo" in the search box.
Cabo Drilling provides core and reverse circulation mineral drilling services on
a contract basis. With a drilling fleet of more than 100 drills, specifically
tailored to meet a variety of drilling service needs, the company is focussing
on organic growth through strong existing client relationships.
With greater demand for drilling services, the company is improving the
utilization of its drilling fleet and increasing revenues without the
requirement for significant additional capital expenditures.
With more than 8 years of specific field drilling experience, Cabo has expanded
its geographic presence such that 20% of its revenue is now generated from
overseas operations, while the remaining 80% is derived from the politically
stable North American markets. Soaring metal prices and ballooning exploration
budgets have created high demand for drilling services. As demand increases,
pricing pressure is reduced, enabling greater flexibility for margin
improvement.
Cabo also delivers a solid drilling and safety reputation, which is fundamental
when bidding for new drilling contracts.
Haywood notes that there appears to be minimum awareness of Cabo and its growth
prospects, particularly from sophisticated institutional investors who only have
an approximate 1% ownership in Cabo versus peers who have upwards of 15 - 50%
institutional ownership.
John Versfelt, Cabo's President & CEO, stated "Cabo Drilling reported record
revenue for the first six months of fiscal 2012 of $31.29 million. This
represents a 50% increase over the $20.86 million recorded in fiscal 2011. The
Company is on track to exceed the $43.22 million reported for all of fiscal
2011, by the end of the third quarter of fiscal 2012."
Haywood stated "Cabo Drilling presents a very attractive and undervalued
investment opportunity with exposure to the global demand for metals and
minerals in combination with revenue growth and improving margins."
Cabo currently trades at $0.13, and with 76 million shares outstanding, the
company is capitalized at $10 million.
For more information, and a copy of the research report, please visit the
company's website www.cabo.ca, phone 604-984-8894 or email info(at)cabo.ca.
For more information about Haywood Securities or to obtain their research,
contact your nearest Haywood office. Their branches are listed on their website
at www.haywood.com.
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Source: InvestmentPitch via Thomson Reuters ONE
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Datum: 12.04.2012 - 23:18 Uhr
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News-ID 134662
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