# Poseidon Concepts PSN.TO



## gibor365 (Apr 1, 2011)

Open Range Energy recently completed its corporate reorganization by splitting into 2 entities:

Poseidon Concepts PSN.TO (A high yield energy services business with robust growth in view) and Open Range Energy ONR.TO.

PSN.TO will have dividends about 8.6% as per today price. (0.09 monthly).
Anybody bought or considering buying PSN?

http://ca.finance.yahoo.com/news/Open-Range-Energy-Corp-marketwire-3817648925.html?x=0&.v=1


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## rassmy (May 7, 2010)

I owned ONR and i get PSN as result of the split. I am closely watching PSN, it is hard to analyse it with no previous earning, however based on the daily trading volume, it seems the institutionals are the big buyers.


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## PMREdmonton (Apr 6, 2009)

They just released earnings on Friday and had a really big quarter with a large earnings suprise, ebitda surprise and revenue surprise.

They reiterated they will continue to offer a 0.09 per month dividend or 1.08/yr which gives a current yield of 7.5%.

They stock had a run-up from their IPO up to 15.50 but for some reason sold off after the earnings report down to 14.60 or so.

I am not sure why there was a sell-off. They are beat expected EBITDA ($64M versus $60M expected for the year, $60M) and increased projections for next year to $170M versus $130M. They beat on net income with $0.73 for year and $0.27 for the quarter. They are projecting an increase in tank capacity to 400 from 325 currently operating. There will be little impact on them from the decrease in nat gas drilling. They are now active in the US where 80% of their tanks are currently utilized. They have only $26M in debt and successfully conducted bought share financing deal for 6.3M shares yielding 83.2M. 

In terms of repeat business they are signing new customers to 3-year contracts.

This company appears to be very financially strong and appears to have really found a niche for themselves. They also are handsomely awarding shareholders with a 7.5% yield. I think I'll buy a big tranche on Monday.

Here's a link to the article:

http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8460088


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## PMREdmonton (Apr 6, 2009)

BTW, anyone have any idea why they sold off after beating on revenue, earnings, EBITDA, increased 2012 financial year guidance, mentioned plans for positive capital expenditures, mentioned stable customer base with repeat revenues and successfully issued shares at market price allowing it to decrease debt to $26M and invest in capital expansion. All this while re-iterating they will continue to pay a 7.5% dividend yield.

I don't really get it by I'm happy to buy into this one. 

Overall I'm very bullish on the companies that supply into the ongoing supercycle in shale fracking and deep sea offshore drilling.


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## al42 (Mar 5, 2011)

I heard about this drop on BNN on Friday, guy said someone was spreading false rumors about one of their tanks failing.
He also said he spoke with the company and they denied the rumor.

http://www.stockchase.com/Company-sl--slq-ID-slv-Poseidon--Concepts.php

Lots of hedge funds are short this stock and are spreading rumors. The tank failure today did not happen.


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## riseofamillionaire (Feb 23, 2012)

PSN and BDI are great energy service plays right now


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## gibor365 (Apr 1, 2011)

riseofamillionaire said:


> PSN and BDI are great energy service plays right now


I'm not sure PSN Payout ratio 327% and P/E 44.5%


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## PMREdmonton (Apr 6, 2009)

Gibor, I think those numbers are severely flawed. The company has been public only a short time and their earnings are rapidly increasing due to expansion of their tankfleet and there will be further expansion this year by about 20%. They made 0.73 last year and are trading around 14.60 so PE is about 20 for TTM but you have to remember this is a rapidly expanding company. EBITDA was $64M last year and is projected for 170M in 2012.

From their presentation they have 45M CFO in the 4th quarter so a 0.09/mo dividend would take about 50% of that cashflow - it looks fairly affordable when you factor in that they have very little debt after their recent share offering.

The company looks like they are doing well and management has executed brilliantly in their rapid expansion into the US with great results thus far.

I don't know how long they can generate these margins and I don't know how much of a moat they have for the insulated, modular water tanks they have developed.

For the next while the company does look good as an income play but only time will tell for their long-term business prospects.

I did find it interesting that customers are signing up for 3-year deals. They must find the company's tanks to be a marked improvement of whatever they were doing before to lock into those deals at those gross margins. It also suggests there may not immediately be any players that will be able to compete with them.


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## gibor365 (Apr 1, 2011)

I'm just wondering why they tanked more than 10% last week?


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## PMREdmonton (Apr 6, 2009)

Allegedly false rumours of tank failures according to al42.


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## gibor365 (Apr 1, 2011)

It's down almost 5% today and beoming more and more attractive


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## PMREdmonton (Apr 6, 2009)

I bought a small tranche last week. I might buy some more if it drops more. They have huge margins, no competition, lots of industry contracts, they really improve the efficiency of the frackers compared to what they were dealing with before they arrived on the scene, they do have some small barriers to entry with some IP, there are no current competitors, they have sales offices in most of the major areas in play, they have delivered good results to the companies that have hired them.

They really look quite solid, cash flow positive, minimal debt, rapidly expanding - I see dividend increases later this year once they get more of these tanks operating.


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## gibor365 (Apr 1, 2011)

You know what worried me a lot...huge insider selling
Company Officers and Directors
Buying Selling
CEO $1,455 -$7,458,750
OFFICER $1,004,204 -$38,187,611
DIRECTOR $27,423 -$6,705,756
Total $1,033,08 -$52,352,116
*Net Selling -$51,319,034*


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## PMREdmonton (Apr 6, 2009)

It always gives one pause.

I don't think it is hugely undervalued, just a fairly valued company paying a good dividend with decent prospects from growth.

I suspect insiders are just using the run-up to lock some profits and have some take home pay.


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## gibor365 (Apr 1, 2011)

Interesting article include PSN by Todd Johnson. He's bullish on PSN

http://seekingalpha.com/article/463801-special-dividends-to-boost-your-portfolio-returns


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## PMREdmonton (Apr 6, 2009)

I opened up the link.

It looks like Todd sees it the same way as me.

I think this is a good income play with GARP and a chance for some capital gains. The company seems to execute well, has a lot of pleased customers and is expanding rapidly in their servicing areas.

It was interesting to hear the suggestion they may be able to broaden their scope and use their tanks to service other business areas. I don't know if the margins would be as good, though. This would likely dilute the company so it would make sense to dedicate all tanks to oil fields so long as they are running at near full capacity utilization.

I have a bid in at 13.50 for more.


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## gibor365 (Apr 1, 2011)

I like Todd's articles....
Today PSN had big swing more than 5% between low/high....
It would be very good for stock if they increase dividends


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## PMREdmonton (Apr 6, 2009)

I suspect we may see one in the second half of the year after they have all their sets running. They really do have the FCF right now to do it but are probably just being prudent about not running up much debt while undergoing their cap-ex plans. Selling those shares a month ago to clear off much of their debt was a shrewd decision that will give them the cushion to be able to maintain a strong dividend policy and pursue their capex plans. At the present, a 8% dividend yield is more than sufficient even without probable upcoming increases. I can easily see this one trading around 20 before the year is through.


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## dave2012 (Feb 17, 2012)

PSN took a big hit yesterday and today. Now trading at $13, down 23% off its Feb highs.

Are you buying or anticipating further price reduction? (ie pull out your crystal ball)


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## PMREdmonton (Apr 6, 2009)

I don't know what will happen to the price action.

Many of the energy service companies have had a rough ride lately despite good earnings. I believe much of the concern is due to cutbacks in drilling in the natural gas sector - this has hurt many companies which have little exposure to natural gas drilling. CJES in the US is one such company which I have bought. I think PSN is another such company which has little exposure to nat gas plays. Their revenue should be quite secure as they do water supply for only about 5% of the unconventional drillers and they have very little exposure to nat gas drilling. They have also signed 3-year contracts with many of the companies so their income is secure and they are very profitable right now with very high margins. Earnings and revenues will be rapidly expanding during the year.

I think the market has been fearful because the business is apparently simple and their should be low barriers to entry which should erode into margins at some point in time. Others have taken the opposite POV that this company is excellent in its execution and safety and offers a value-added product that is far superior to anyone else out there in the forseeable future. Their tanks are not only modular, cheap to put up and take down but they are also insulated and provide major advantages in water supply and storage compared to their competitors.

I view this one as mostly an income play but with good potential for capital appreciation as they expand their business.

I am taking the opportunity to buy on the weakness and get paid while the market sees the data come in (they only went public about 6 months ago after being spun off from Open Range) and relaxes. In the mean time you get a 8.3% yield that is likely to increase in the 2nd half of the year.


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## PMREdmonton (Apr 6, 2009)

The one thing this stock really needs is Optsy's approval - then we'll get the take off.


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## OptsyEagle (Nov 29, 2009)

Everyone should Buy it, love it, hold it, marry it, envelope it into your portfolio like your ripping into the drum stick of a turkey after 5 days of fasting. Something like that.

Everytime I look at this stock, I end up neutral when I am done. So all I have been able to do, to date with it, is look. I didn't read all the threads on here but all the discussions I have seen so far go from the bulls explaining correctly that there is a big boom in hydraulic fracturing, the drillers need the tanks this company supplies and the profit margins are incredible. The stock is not overly valued and the dividend is great.

Then the bears step in and illustrate that this company has no barrier to entry and therefore no moat. The laws of free enterprise and competition say that this companies future must end in a mud fight between many new enterents into this fairly easy business.

The bulls counter with the fact that the business is not the same as making swimming pools, PSN has first to market advantage and there is an incredible amount of business for everyone. Only the surface has been scratched.

The fight goes on and on and on and frankly, I can't pick the winner. I keep watching it though. Good luck to everyone.


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## PMREdmonton (Apr 6, 2009)

Thanks for stopping by Optsy.

I agree that this isn't a back up the truck sort of a company.

I do like it as an income play for now, I see some potential for some capital appreciation. The key for the company is to continue to execute well and keep their customers happy with the service provided. They should continue to expand in regions where they have a foothold, strong demand and the ability to sign long-term contracts for their services.

I've made it a 2% holding in my portfolio and I am happy to stop here for now after getting a tranche at 13.

If it is like its fellow energy service companies it could be in for a wild ride if there is a recession. Even though its business won't track along with the frackers that is the space where it services and if they are weak then the shorters will try to short this one, too. So I can see this one falling until its next earnings release where people realize they are disconnected.


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## riseofamillionaire (Feb 23, 2012)

OptsyEagle said:


> Everyone should Buy it, love it, hold it, marry it, envelope it into your portfolio like your ripping into the drum stick of a turkey after 5 days of fasting. Something like that.
> 
> Everytime I look at this stock, I end up neutral when I am done. So all I have been able to do, to date with it, is look. I didn't read all the threads on here but all the discussions I have seen so far go from the bulls explaining correctly that there is a big boom in hydraulic fracturing, the drillers need the tanks this company supplies and the profit margins are incredible. The stock is not overly valued and the dividend is great.
> 
> ...


Thanks for the insights.


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## riseofamillionaire (Feb 23, 2012)

Getting caught up in the energy selloff. A good entry point here if you're bullish.


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## Knight Rider (Apr 5, 2009)

Interesting company. Margins are insanely good and the company is growing quickly. 25 tanks installed in 2010, 240 by the end of 2011, achieved 325 units last month and aiming for 400 by June. Certainly considering this one if it goes down to $11. Anyone else with thoughts?


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## PMREdmonton (Apr 6, 2009)

Energy service stocks are hated right now.

Don't jump in unless you can stomach a 50% loss or you could get whipsawed on some of these plays no matter how good the valuations are.

The one thing that help keeps you patient on a stock like PSN is the rich monthly dividend. If it gets down to $11 it is basically yielding 10% and the market is passing a judgment that the yield is not sustainable. We are actually pretty close to that point already with a yield of 8.8%. I tend to have a tick in my head that notes yields above 8% are generally not sustainable most of the time. This means either the stock price rises or the dividend gets cut but most stocks won't persist with that kind of yield for too long. You just have to decide which event is going to happen and invest accordingly.


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## Knight Rider (Apr 5, 2009)

PSN has had a few great days in a row. Hit $12 2 days ago and has rebounded to $13.74 today. Bought 300 shares this morning at $13.17.


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## dave2012 (Feb 17, 2012)

Crazy ride down, crazy ride up! :encouragement:


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## gibor365 (Apr 1, 2011)

dave2012 said:


> Crazy ride down, crazy ride up! :encouragement:


PSN is really the "crazy-run" stock... today down 4%....why? any bad news?


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## Knight Rider (Apr 5, 2009)

No idea. Mullen announced yesterday that they were going to enter the Frac tank market later this year.

I bought 300 shares at $13.17 a few weeks back, so I'm back down to break-even today, but I am set to receive my first dividend May 15th. I think once they release Q1 earnings this stock should jump nicely.


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## Knight Rider (Apr 5, 2009)

Q1 earnings were released tonight.

EPS is about 30% higher than projected. 54% growth over Q4 2011. Revised EBITDA for 2012 up 23.5% from 170 mil to 210 mil. Hopefully this will get PSN back on the uptrend as it's has a rough past few days.


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## riseofamillionaire (Feb 23, 2012)

You guys should do fine with this one over time. Just caught up in the selloff currently.


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## PMREdmonton (Apr 6, 2009)

Here is the earnings release:

http://poseidonconcepts.com/News/news.php?xml=http://feeds.mwnewsroom.com/article/rss?id=1587367

The highlights are:

EBITDA 30% higher than forecast for the quarter at $43.7M or 0.55 per share and was 54% higher than 2011 Q4
Net income higher than forecast at 0.37 per share which was 50% higher than 2011 Q4
Increased EBITDA for 2012 forecast from $130M at IPO to $170M at last update in March to $210M

The company seems to believe that despite new entrants demand for their services has been robust. They had initially planned to be at 400 tanks by end of September but now plan to be at 500 tanks by the end of September and aim to make 7 per week.

They claim they are having little problem getting firms to roll over their 1-year agreements that are terminating now. They also say that many of these firms are asking for extra tanks.

They claim they are getting more requests from new firms and are rapidly expanding in the US, especially the Southern US.

They don't seem to feel there is any pressure on their margins at all. They claim customers seem to be very happy with them and they offer significant advantage compared to previous water tank systems in existence and more companies are moving away from lined pits due to fear of leakage into surrounding soil which the authorities are cracking down hard upon now. Many firms want to avoid this potential issue altogether and has created large demand for their product. They seem to feel they have penetrated only about 5% of the potential market.

They also mention they are moving into possible new markets for their tanks. They really didn't describe who these new customers would be as the venture is too early at this stage.

Overall, I'm very happy with my purchase even though I am down about 20% from my ACB. With their growth and how well the dividend is currently covered and yielding 9% I am mighty tempted to increase my share count. I can easily see this one shooting up about 50% once the Euro fears subside a bit and the recession fears subside a bit. In the meantime I collect a 9% monthly dividend.

I actually wonder if we are going to see a dividend increase given how rapidly they are expanding. The CEO explained the business model was always meant to support a high percentage of FCF paid out in dividends. This was on the basis of a low fixed cost business in the rental field. If they are getting 30% more EBITDA than they expected and expanding 25% more than they expected with near full utilization of their tanks, it is easy to see a dividend increase on the way here.

Anyhow, I was a bit worried about earnings here as there were all the concerns about dropping NG rigs and whatnot. I didn't think they would be too affected as most of their clients are oil and liquids based and this turned out to be true. The only thing I wonder is if the street will reward them for their earnings blowout here. If you take their projected EBITDA they are trading at 4.5 x EBITDA in a company whose revenues just increased 360% in this quarter compared to last year's quarter and EBITDA increased 394% in this year's quarter compared to last year's quarter. They are showing about 50% growth in EBITDA compared to just the last quarter. 

I guess the street is just ultra-pessimistic about future earnings and only time will tell how much business will be taken away from them by new entrants in the field. My own feeling is there is plenty of room for competitors given how large the field is, how much the field is growing and how little of it is presently adequately serviced. The fears of contamination of the ground by fracking companies has got to be real given all the backlash coming from government, environment and landowner groups so they aren't going to want to save a few dollars at risk of causing ground contamination from a lined pit, IMO.

Anyhow, GLTA be you a bear or a bull or just a bystander on this stock.


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## dave2012 (Feb 17, 2012)

Glad the earns were positive. I've averaged down a few times but lately its been a wild ride down. Up really 11% today while makes things better. Still some loses to make up though.


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## humble_pie (Jun 7, 2009)

this company is an environmental atrocity, imho.

any company lazy enough & cheap enough & careless enough to store its toxic filth in giant swimming pools located next to the worksite instead of trucking said filth to a proper treatment plant ought to be fined, imho.

i don't care how many "liners" this dingaling opportunist of a company says it's placed around its cesspools, sooner or later one of them is going to bust, imho.

i'd be willing to bet the pool materials are cheapio polymer composites. Long-lasting polymers like carbonate would cost too much & this company has quick-n-dirty written all over it, imho.

one bust & it's hello billion dollar lawsuiit, imho.

company doesn't even talk prominently on its website about the kind of insurance it's carrying.

any municipality that would hand out a permit for a giant open cesspool within 200 kilometres would have to be out of its skull, imho. Or a greater distance if location is near ground water sources, imho.

(signed)
green cookie


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## PMREdmonton (Apr 6, 2009)

humble_pie said:


> this company is an environmental atrocity, imho.
> 
> any company lazy enough & cheap enough & careless enough to store its toxic filth in giant swimming pools located next to the worksite instead of trucking said filth to a proper treatment plant ought to be fined, imho.
> 
> ...


Hi HP, I agree the whole hydrofrack waste water issue is a gigantic issue that isn't getting enough public attention. However, we know that current hydraulic fracturing generates millions of barrels of toxic water full of frack chemicals as well as the salty brine it washes out of the Earth. This water comes back out before major gas production begins and must at least be temporarily stored until it can be dealt with. There are some companies that specialize in the recycling or treatment of the water such as Ridgline services which is a company that I have been reading about lately as another potential buy. I think many frackers deal with the water by injecting back into the holes they have drilled to store it in the Earth. The problem with doing this is it has apparently been linked to earthquakes and thus is drawing a lot of scrutiny.

The whole backdrop is why I've been such a proponent of Gasfrac. Gasfrac uses no water. It produces no waste water. It can even trap the methane that all other processes just burn off or let escape into the environment untreated where it acts as a much more potent GHG than CO2. So the world already has a procedure that can produce at least equivalent amounts of hydrocarbons as a hydraulic frack while using hydrocarbons which can be recycled as the frack fluid (liquid gel propane).

Regardless, so long as the tanks effectively store the waste water with none leaching into the environment I don't see this company contributing at all to the pollution of the planet. I think they give a far better solution than lined puts which can easily have leaks which are allowing major contamination of the soil that no one appreciates. It is the lined pits that are the major evil here.

I actually think all the hydraulic fracturing companies should be forced to treat the water they produce. Once they are forced to do so it will add markedly to their costs and will internalize the existing externality.


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## gibor365 (Apr 1, 2011)

I think PSN is the only stock that was down (and sharply down) today in my portfolio....couldn't find any news... somebody know what happened? bad news or just profit taking?


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## thenegotiator (May 23, 2012)

gibor said:


> I think PSN is the only stock that was down (and sharply down) today in my portfolio....couldn't find any news... somebody know what happened? bad news or just profit taking?


1 dollar down from the high and u call it sharply down?
wow


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## gibor365 (Apr 1, 2011)

thenegotiator said:


> 1 dollar down from the high and u call it sharply down?
> wow


It was 2.5% down in 1 day ... and yes, it's sharply down


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## thenegotiator (May 23, 2012)

gibor said:


> It was 2.5% down in 1 day ... and yes, it's sharply down


2.5% drop is my intraday variation on daytrading or swingtrading Gibor.
give me a break man.
u r still collecting divys from PSN. so relax man


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## Hawkdog (Oct 26, 2012)

if you like this one, check out CMG.T Computer Modeling Group
the dividend is not as big but it has split a couple of times, less than half the shares outstanding


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## thenegotiator (May 23, 2012)

Hawkdog said:


> if you like this one, check out CMG.T Computer Modeling Group
> the dividend is not as big but it has split a couple of times, less than half the shares outstanding


poseidon is a spinoff of ONR.
no i am not a trader of PSN nor do i have interest in it.
i trade energy stocks at best and i recently ventured into tech stocks.


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## Hawkdog (Oct 26, 2012)

thenegotiator said:


> poseidon is a spinoff of ONR.
> no i am not a trader of PSN nor do i have interest in it.
> i trade energy stocks at best and i recently ventured into tech stocks.


I have no interest in PSN either, to easy for competition to emerge
CMG is a tech stock really, they providing software to the oil and gas companies - to map and assess deposits


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## thenegotiator (May 23, 2012)

Hawkdog said:


> I have no interest in PSN either, to easy for competition to emerge
> CMG is a tech stock really, they providing software to the oil and gas companies - to map and assess deposits


well
i am being fried by my adventure on AMD atm :biggrin:
tech stocks are an adventure atm for me.
I have 2 of them right noe.
INTL and AMD
what a paradox
anyway CMG apparently has low volume anyway right?
i will stick with the 2 above.
tuition on AMD is actually costing me but it is part of the game.


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## BullAllTheWay (Feb 29, 2012)

thenegotiator said:


> well
> i am being fried by my adventure on AMD atm :biggrin:
> tech stocks are an adventure atm for me.
> I have 2 of them right noe.
> ...


I have been holding CMG for more than seven years. Never regretted that move.


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## gibor365 (Apr 1, 2011)

thenegotiator said:


> I have 2 of them right noe.
> INTL and AMD


Maybe you meant not INTL, but INTC?! 

My wife has a lot of INTC shares in from her former ESP, so we just hold it and collecting dividends


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## thenegotiator (May 23, 2012)

sorry INTC
not INTL lol
u and ur dividends.
well if u had a million bux i believe that TRP pays quarterly 44 cents right?
that is about 22300 shares
per quarter = approximately 9800 bux
per year 39250.
not too shabby right?
i wonder if Belguy ever thought of that?
or maybe he thinks TRP is going belly up due to LOW NATURAL GAS prices lol


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## thenegotiator (May 23, 2012)

BullAllTheWay said:


> I have been holding CMG for more than seven years. Never regretted that move.


will look into it.
thks


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## gibor365 (Apr 1, 2011)

thenegotiator said:


> will look into it.
> thks


I don't do drugs and swing trading , but imho swing trades on 10K avg volume is not so good idea lol


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## thenegotiator (May 23, 2012)

gibor said:


> I don't do drugs and swing trading , but imho swing trades on 10K avg volume is not so good idea lol


neither do i.


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## gibor365 (Apr 1, 2011)

thenegotiator said:


> u and ur dividends.
> well if u had a million bux
> .....i wonder if Belguy ever thought of that?


imho dividends is a good thing 
still don't have million bux, but you got an idea 
I adviced dividend investing to Belguy couple of years ago, but he likes indexes a lot 
Just didn't get wht TRP?!
Belguy could've have a portfolio with solid blu chips like T, PM, MO, KMB, BCE, ABT, HSE, couple of canadian banks, REIT etc and have average yield about 5% easily..... + to take a little bit risk and add high-yielders like PSN, LIQ, EGL.UN, AGNC, NLY etc ....and just live from dividends


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## thenegotiator (May 23, 2012)

gibor said:


> imho dividends is a good thing
> still don't have million bux, but you got an idea
> I adviced dividend investing to Belguy couple of years ago, but he likes indexes a lot
> Just didn't get wht TRP?!
> Belguy could've have a portfolio with solid blu chips like T, PM, MO, KMB, BCE, ABT, HSE, couple of canadian banks, REIT etc and have average yield about 5% easily..... + to take a little bit risk and add high-yielders like PSN, LIQ, EGL.UN, AGNC, NLY etc ....and just live from dividends


TRP was just an example of my head.
so one would wonder Gibor if the million bux is a million bux right?
actually i would possibly live just off divys , but the money i can make trading far outweighs any dividend on earth.
that is obviously between gains and losses.
u cannot always win.
there will always be someone smarter than u right?


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## gibor365 (Apr 1, 2011)

"but the money i can make trading far outweighs any dividend on earth." - and what about money you can lose trading?!
To tell you the truth, I know much more ppl who got burned while trading, than who gained....
I just don't think that when I'm working full time, I can really compete with institutions , HFT machines etc.... I just can guess trend like in Vegas 
for example I got good gains trading PALL, but lost trading DBA... 

When I'm retired , maybe be I'd allocate about 5% of portfolio for trading, but core I'd prefer to keep in dividend stocks....


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## thenegotiator (May 23, 2012)

gibor said:


> "but the money i can make trading far outweighs any dividend on earth." - and what about money you can lose trading?!
> To tell you the truth, I know much more ppl who got burned while trading, than who gained....
> I just don't think that when I'm working full time, I can really compete with institutions , HFT machines etc.... I just can guess trend like in Vegas
> for example I got good gains trading PALL, but lost trading DBA...
> ...



Gibor
like i said above.
the winners outweigh the losers when u have a million bux.
you will always lose money also.
it is guaranteed like taxes , death and taxes after death. period.
i am sure most of us here do have a normal job.
it is not about HFT or supercomputers or anything else.
it is called trading.
plain and simple man.
as for divys when you are retired you would hope u learned something about trading.
i am sure that holders of ABX today are not too happy with a 10% hair cut.


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## Greyhound86 (Feb 21, 2010)

Wow. Down around 55% to the $6.00 range. 17 million shares traded so far today vs average of 100,000 per day.


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## doctrine (Sep 30, 2011)

Thats nearly 20% of the shares of the company. Ouch. Other oil field services companies are entering the market now; diversified oil services companies, that can handle the margin pressure.


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## yask72 (Mar 11, 2012)

And to think just a few weeks ago i was thinking about initiating a position. I feel like a genius going with my conservative side and grabbing me some Coke (KO) instead. Dodged a bullet on this one...feel bad for those who got nailed.


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## blin10 (Jun 27, 2011)

damnnnn


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## Hawkdog (Oct 26, 2012)

Anyone buying in now? looks like the divi is now close to 20%


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## thenegotiator (May 23, 2012)

ask GIBOR


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## humble_pie (Jun 7, 2009)

isn't this the company that's courting lawsuits by the dozen ? that's installing large plastic swimming pools into which toxic extracted material can be dumped & left, open to the sky ? until the company can scrounge up the $$ to get the waste transported to a treatment centre ?

if the company goes bankrupt, no treatment. Pools are left to bake in the prairie sun or break down during the prairie winter. Possible lawsuit.

if a swimming pool bursts for whatever reason, possible lawsuit.

it's difficult to imagine a municipality cuckoo enough to issue permits for this one.


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## Hawkdog (Oct 26, 2012)

I was under the assumption that before the pools they just dug pits in the ground and used those as storage?





humble_pie said:


> isn't this the company that's courting lawsuits by the dozen ? that's installing large plastic swimming pools into which toxic extracted material can be dumped & left, open to the sky ? until the company can scrounge up the $$ to get the waste transported to a treatment centre ?
> 
> if the company goes bankrupt, no treatment. Pools are left to bake in the prairie sun or break down during the prairie winter. Possible lawsuit.
> 
> ...


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## Ethan (Aug 8, 2010)

I'm intrigued. For the 9 months ended 09.30.2012, FFO of $104.2M against capex of $29.2M and dividends of $64.5M would indicate they are not strapped for cash. Q3 results weren't great with FFO of $25.8M against capex of $9.7M and dividends of $21.9m.

What I don't understand is why they are so terrible at collecting their receivables? For the 9 months ended 09.30.2012, their receivables have increased $71.9M on revenes of $148.1m. Throw in bad debt expense of $9.5m, and they are collecting less than half of their revenues. Of their $125.5m in receivbables, $36.1m is over 120 days. They must have a good justification for keeping those receivables on their books. If you write-off the $36.1 million, FFO drops to $68.1M for the 9 months ended 09.30.2012. I'm going to continue watching, but I don't think I'll be establishing a position. The growth in receivables and past due balance are too big of a risk for me.


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## Greyhound86 (Feb 21, 2010)

I am guessing that part of the problem with the receivables might be that customers are balking at paying the full amount owing given that rates for new jobs are lower. Again just a guess.


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## BullAllTheWay (Feb 29, 2012)

I would not touch this stock wit a 10 foot poll. Management has failed miserably. It makes more sense to wait and see if it is able to fix the problems.


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## OptsyEagle (Nov 29, 2009)

Ethan said:


> What I don't understand is why they are so terrible at collecting their receivables? For the 9 months ended 09.30.2012, their receivables have increased $71.9M on revenes of $148.1m. Throw in bad debt expense of $9.5m, and they are collecting less than half of their revenues. Of their $125.5m in receivbables, $36.1m is over 120 days. They must have a good justification for keeping those receivables on their books.


Well, ask yourself. If you had rented a product that cost $4,000 last month and today, that same company (as well as many competitors) is willing to rent you the very same product for only $1,000, how happy and quick would you be to pay that previous bill. 

If I buy an item at Canadian Tire and it goes on sale at 50% off the next week, you can be darn sure that I will be in there with my receipt expecting a refund on my previous price. That is what is happening.


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## Ethan (Aug 8, 2010)

Wouldn't Poseidon have signed contracts with their customers? You can't reneg on a payment because the same service is offered at a later date for less.


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## OptsyEagle (Nov 29, 2009)

Ethan said:


> Wouldn't Poseidon have signed contracts with their customers? You can't reneg on a payment because the same service is offered at a later date for less.


That is true, but you can put pressure on your supplier to reduce the price if they ever want anymore of your business in the future. Who will inevitably win, is difficult to predict, but the quagmire of it is still a reality. Let's face it, it is obviously the perception of this that is bothering current investors, since they could write off their entire accounts receivable and it would only add up to about $1.00 per share after the tax benefits of this expense. So in itself, it is not overly material, but it does signify some serious stress in the industry.


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## Ethan (Aug 8, 2010)

Accounts receivable comprise 44% of market cap, $1.54/share.

Regardless of what happpens with the receivables balance, it sounds like they'll have some pressure on their margins going forward, if the same service is now being offered by the competition for much less.


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## OptsyEagle (Nov 29, 2009)

Ethan said:


> Accounts receivable comprise 44% of market cap, $1.54/share.
> 
> Regardless of what happpens with the receivables balance, it sounds like they'll have some pressure on their margins going forward, if the same service is now being offered by the competition for much less.


That's the elephant in the room and unfortuneately for investors, that elephant, although not in the room was certainly grazing close by, ever since this company went public.

That $1.54 would be a tax deductible expense and hence my $1.00 EPS estimate above. Plus, I doubt they will need to write it all off.


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## Potato (Apr 3, 2009)

Ethan said:


> Wouldn't Poseidon have signed contracts with their customers? You can't reneg on a payment because the same service is offered at a later date for less.


They did have contracts, but they are releasing their customers from those contracts. It's ugly.



> Poseidon’s tank utilization and revenue in the quarter were further affected as we renegotiated terms on several long‐term agreements with specific, strategic customers due to changes in their project schedules and capital budgets. Meanwhile, several other long‐term agreements lapsed without renewal or were suspended as certain customers’ activities were reduced due to macro considerations or capital budget constraints.


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## thenegotiator (May 23, 2012)

so ......
if it looks like a bottom it is a bottom?:rolleyes2:


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## doctrine (Sep 30, 2011)

Look at the volume.. added up over 30 days is almost equal to the # of shares outstanding. There is, of course, a good price for any stock, not sure what a fair value for this company is.


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## doctrine (Sep 30, 2011)

http://www.calgaryherald.com/busine...epts+shares+crash+dividend/7748775/story.html

1/8th of the company's shares trading hands on the suspension of the dividend.


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## thenegotiator (May 23, 2012)

ha
so the bottom ain't a bottom:rolleyes2:

THIS IS THE PROBLEM WHEN COUGH COUGH INVESTORS buy stocks like this for divvys.
from an absurdly IPO value around 11 bux and hit an all time high of 16.9 and now is worth absolutely nothing.
u want to live on divvys buy good solid stocks.
maybe some members here will learn a tough lesson when buying natural gas related stocks.


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## thenegotiator (May 23, 2012)

PMREdmonton said:


> It always gives one pause.
> 
> I don't think it is hugely undervalued, just a fairly valued company paying a good dividend with decent prospects from growth.
> 
> I suspect insiders are just using the run-up to lock some profits and have some take home pay.



is it undervalued now?:rolleyes2:


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## Sherlock (Apr 18, 2010)

Now now it's easy to be a monday morning quarterback...

After buying PGF at $10, CLC at $9, and BNP at $22 I'm surprised I managed to escape this one...


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## thenegotiator (May 23, 2012)

not being a monday morning quarterback here.
u want quality stocks in the NG arena that one surely was not it.
value traps are all over the place .
i do not refrain to state my losses in the tech arena which i have absolutely no knowledge.
TRP in 2011 was being bashed by several members here.
take a quick look at that chart .
like i said u want divvys buy the largest natural gas producer in the world.... XOM and collect divvys.
u want to add some exposure on coal and NG buy CNX and collect divvys
do not buy crap.
u want to trade by all means but do not cry if ur stock is crashing the day after.


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## avrex (Nov 14, 2010)

It now trades below book value.


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## avrex (Nov 14, 2010)

I noticed that Poseidon trades on the US OTC market under the ticker symbol POOSF.

In light of the disappearing share price, I think it should be renamed "poof!"


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## humble_pie (Jun 7, 2009)

avrex here is a frivolous footnote, did U know that every single canadian stock is available in US pink sheets as a tracker stock. Their symbol usually ends in "F" - as does poosf - which indicates that the stock belongs to the foreign section of the pink sheets.

in fact, most foreign stocks from most countries trade as tracker stocks in the US. The general opprobrium reserved for OTC & pink sheet stocks does not always apply to tracker stocks; their list is headed by none other than grand old dowager Nestle of switzerland herself.

tracker stocks are not held in any US inventory. Any broker charged with buying a tracker stock will, through his network, end up buying it on the original country's exchange. In the case of canadian tracker stocks, the stock is bought on toronto or else on venture toronto exchange.

all costs, including FX costs & fees plus a healthy commission for so troublesome a stock transaction, get passed on to the investor. Typically tracker stocks have huge spreads between bid & ask along with no flexibility in trade execution.

bombardier is the best-known canadian company whose stock trades stateside as a tracker stock only, since bombardier has no listing on any US exchange.

one can see the appeal of canadian tracker stocks for americans, whose brokers usually don't allow access to toronto markets in canadian dollars (unlike our brokers, who freely allow access to US markets in US dollars.) Millions of americans trade canadian penny resource stocks as pink sheet tracker stocks.


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## avrex (Nov 14, 2010)

ah, I see.
Very good information. thank you.


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## Hawkdog (Oct 26, 2012)

dividends suspended on this one. glad i didn't buy.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:PSN-2028472&symbol=PSN&region=C


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## Hawkdog (Oct 26, 2012)

dividends suspended on this one. glad i didn't buy.

http://www.stockwatch.com/News/Item.aspx?bid=Z-C:PSN-2028472&symbol=PSN&region=C


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## Jon_Snow (May 20, 2009)

What a train wreck.


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## Toronto.gal (Jan 8, 2010)

'Poof' indeed; another -70% dive.

From $16 to $0.260, and in just 5 months.


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## Hawkdog (Oct 26, 2012)

ouch,

reminds of 360 networks and others in the tech meltdown.


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## Canuck (Mar 13, 2012)

omg just saw that .28 share price, unbelievable. Ugh, I was looking at that one last summer, thank god I listened to a few analysts at that time


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## rassmy (May 7, 2010)

glad I exit my position at $6.5


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## webber22 (Mar 6, 2011)

Cease trade order issued. Might not trade again.

http://www.newswire.ca/en/story/1115053/asc-cease-trades-poseidon-concepts-corp


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## humble_pie (Jun 7, 2009)

was a time recently when the cmf pumpstagangsta brotherhood was loving this stk to death


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## OptsyEagle (Nov 29, 2009)

My due diligence identified the fact that this company had no barrier to entry and at some point its business would be ravaged by competitors. I am pleased that this DD saved me from buying it at $13 or so, and riding it down to around $5. 

However, avoiding this move from $5 to $0.25, is a whole other thing. Avoiding that was just dumb luck. I never would have dreamed it would have fallen apart to this level ...so quickly. Eventually maybe, after a year or so, but in one quarter. WOW. Makes me think something illegal must have been going on in the Management department, or at the least something very, very, unethical.

Anyway, I have owned enough of these investments where my DD did not protect me much, so I feel the pain of any investor that might have been long on this position. The only good news that comes from these events, is that the position soon becomes so small in your portfolio, you will cease to worry about it anymore. Something good can come from almost anything.


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## thenegotiator (May 23, 2012)

OptsyEagle said:


> My due diligence identified the fact that this company had no barrier to entry and at some point its business would be ravaged by competitors. I am pleased that this DD saved me from buying it at $13 or so, and riding it down to around $5.
> 
> However, avoiding this move from $5 to $0.25, is a whole other thing. Avoiding that was just dumb luck. I never would have dreamed it would have fallen apart to this level ...so quickly. Eventually maybe, after a year or so, but in one quarter. WOW. Makes me think something illegal must have been going on in the Management department, or at the least something very, very, unethical.
> 
> Anyway, I have owned enough of these investments where my DD did not protect me much, so I feel the pain of any investor that might have been long on this position. The only good news that comes from these events, is that the position soon becomes so small in your portfolio, you will cease to worry about it anymore. Something good can come from almost anything.



sorry to hear about your loss.
i hope that u do get over it.
cheers


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## phrenk (Mar 14, 2011)

For them to write off 2/3 of revenues is clearly fraud. How about their auditor, KPMG ... What will happen to them ? Absolutely nothing.


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## OptsyEagle (Nov 29, 2009)

thenegotiator said:


> sorry to hear about your loss.
> i hope that u do get over it.
> cheers


read it again.


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## thenegotiator (May 23, 2012)

i did.
i misunderstood u.


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## james4beach (Nov 15, 2012)

Sorry, to anyone who got burned by this. It's pretty important to read the financial statements of any stock you're going to invest directly in. Then again it can be hard to understand and analyze the financial statements (and be quick to respond when financial conditions change). Admittedly, that's hard to do. This is the problem with holding individual stocks. You have to watch them so closely!

One thing that's very strange in Poseidon's financial statements is the size of their "Accounts receivable" (amounts owed to them by others). At June 2012, their accounts receivable was $119k versus $120k book value; the accounts receivable was 99% of the company's book value (assets - liabilities). That's, um, very large, and they're having problems collecting that money. That's not good.

At September 2012 accounts receivable became 117% of book value. So at this point the company's value is entirely at the whims of their customers making good on payments. And then suddenly a huge chunk of their accounts receivable went sour; a whopping 29% of their accounts receivable became past due and they took an expense charge.

And then apparently the company informed shareholders that they should not trust the financial statements, and the financials will have to be restated. Whenever you see that, you have to GET OUT.

There's a lawsuit now
http://www.reuters.com/article/2013/02/16/ny-tripp-levy-lawsuit-idUSnPnNY61558+160+PRN20130216

"In particular, it was announced that approximately $95 million to $106 million 
of the Company's $148.1 million in revenue for the 9 months ended September
30, 2012 should not have been recorded as revenue in the Company's financial
statements; and as a result of recording the foregoing revenues, approximately 
$94 million to $102 million of the Company's $125.5 million accounts
receivable as at September 30, 2012 should not have been recorded in the
Company's financial statements as accounts receivable. As a result, the first,
second and third quarter 2012 financial statements (the "Financial Statements")
will be restated and the Company advised investors that they should no longer
rely on the Financial Statements."


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## james4beach (Nov 15, 2012)

Basically sounds like fraud... they're saying, yeah um 80% of our accounts receivable probably shouldn't have been there.
As I mentioned above, the entire book value WAS the accounts receivable (liquidation value of the company)

In fact when they say they over-stated accounts receivable by $100 million, but their BOOK VALUE is only $107 million... uh oh ...

what they're pretty much saying is "looks like we were sloppy on the math or screwed up something, looks like our company is worth about 7% of what we reported before. Oops."


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