Ensign Energy Services (ESI)
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Thread: Ensign Energy Services (ESI)

  1. #1
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    Ensign Energy Services (ESI)

    2.6% yield, trading below 10x P/EPS, less than 5x P/CFPS
    Significant dividend growth over past 10 years. Increased from $0.04 to $0.38 from 1999 to present.

    Couple of analysts are calling for dividend hikes in 2012.
    Lowest analyst price target is $16.50, only 4 out of 15 are below $20.00
    6/15 analysts have Hold or Sector/Market perform ratings. The rest are outperform/Buy.

    Big ownership stake owned by N. Murray Edwards (Richer than God, owns the Flames and owns ~500 mil of ESI). If he's in it it's gotta have some value.

    Services wells and is a contract driller, so more reliant on action in the oil sands rather than tied to the price directly (obviously higher oil prices means more action, but profits are likely more stable).

    Thoughts?

    Alternatives would be about 1/10th the size and maybe more upside, but more downside as well:

    SVY-t
    PHX-t
    CET-t
    AKT.A-t


  2. #2
    Senior Member FrugalTrader's Avatar
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    ESI is a member of the Canadian dividend achievers index (cdz covers this) . This essentially means that they have increased their dividend annually for at least the past 5 years.

    disclaimer : I own a small position in ESI
    Hidden Content - Follow my journey to one million in net worth..

  3. #3
    Senior Member maxandrelax's Avatar
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    Anyone stocking up on ESI at this price level? Seems to be good opportunity, but am wondering if the drilling and service industry is under pressure these days. Anyone from Calgary have any insight?

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  5. #4
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    Should have been buying it at ~$13 in May of this year, but missed the boat there. I am short 20 January puts at $15 strike price, so I'm hoping it doesn't move much up or down in the next month. Will roll the puts or the covered calls depending where it ends up in January.

    In hindsight would have been great to have bought ~$15 when I started this thread. Ran up past $17 in the next two months.

  6. #5
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    This is a hindsight is 20/20 reply. I first bought esi about 15 years ago at $5.00 and sold about $10. Watched it go to high $50's and split 3 for 1, go to the same levels again and again split 3 for 1. I cry here. Oh well, I was a beginner and moved on to other investments and did ok. I did buy it back at $12 a couple years ago and still hold it now. I guess the lesson here is buy and hold if the company continues to be solid. Akt.a was also mentioned above and I have also held that in the past, very solid company, pays a dividend, but is very thinly traded at times. I guess you could say I've always liked the drillers, along with esi, I also hold precision drilling (pd), bought at $3 after the crash in '08, and frc, mainly for the dividend.

  7. #6
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    This looks like a good company. I'd prefer a slightly higher yield, but looks like there were many opportunities throughout this year to get it as high as 3.3% (now 2.9%). Worth watching.
    Last edited by doctrine; 2012-12-26 at 08:57 PM.

  8. #7
    Senior Member maxandrelax's Avatar
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    I've got a buy in at 14.6. Share price is currently around 70% of its Graham number, indicating good value. You have to be contrarian in this market. I have wanted to buy some consumer discretionary like Weston and Saputo for a while now but they keeps going up!

  9. #8
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    Hey all,
    Is anyone looking at purchasing this stock right now? It's trading below book value, but the current liabilities ratio isn't too great. Good earnings over the last ten years. I'm just wondering if anyone thinks this stock is undervalued at the moment. Is there a lot of fear that this company will tank with the low price of oil? Is that why it's so low?

    Thanks

  10. #9
    Senior Member FrugalTrader's Avatar
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    Basically all oil and gas drilling companies have been hammered due to low oil prices (ESI, PD, SDRL, RIG etc). If low oil prices are the new reality, then ESI could run into big trouble. However, if you have a long view and believe that oil will bounce back, ESI should bounce with it.
    Hidden Content - Follow my journey to one million in net worth..

  11. #10
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    I bought a bit more of this today...anyone else ?


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