# Cathedral Energy Services CET.TO



## liquidfinance (Jan 28, 2011)

Any holders of this one? I was playing with some different screens last night and this one caught my eye. 

2013 Q3 KEY TAKEAWAYS 
 2013 Q3 set records for U.S. directional drilling revenues and U.S. production testing revenues; 
 Continued growth in U.S. activity levels for both divisions – 25% increase in year-to-date revenues; 
 Cathedral continues to “win” incremental work due to success of its proprietary Fusion EM/MWD platform; 
 Sale/leaseback of Nisku and Calgary, Alberta facilities is completed with net proceeds of $22,260 and gain of $5,354 – net proceeds used 
to reduce bank debt; and 
 Continued operational success, confident outlook and balance sheet flexibility have provided a sound basis for a 10% dividend increase to 
$0.0825 per share. 


Market Cap 169.55Million
PE 15.65
Down 23% from it's recent high. 
RSI is very oversold 

Price is just below NAV

7% Dividend yield and they just increased it by 10% Also increased it in 2012.


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## Canadian (Sep 19, 2013)

I'm surprised this never came up on my screeners. If it did I'm surprised I never noticed it. I like the look of it at first glance - I'll have to take a deeper look into it later today.


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## doctrine (Sep 30, 2011)

They screen very well with the current pullback, and I like the low debt. They've had some bad quarters until Q3, which is interesting because it dropped so much after the results came out.

The P/E is just above 15, which is why it never came onto my screens this month. But it only hit 15 because of Q3 results of $0.22 a share; a month ago, the trailing 12 month earnings were $0.19, giving them a P/E of 25.


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## doctrine (Sep 30, 2011)

Upon further review, you should be careful here; of the $0.27 in earnings in the last 9 months, $0.21 or nearly 80% of net earnings are due to gains on sales of property, land and buildings. If you adjusted out those one-time gains, the P/E would be much higher. Despite higher sales, they essentially had the same profit as last year. This is reflected in their declining margins. There would have been a 7-8% decline in book value without the one time asset sales, which would have been consistent with their dividend payout. This makes more sense to me, now.


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## liquidfinance (Jan 28, 2011)

doctrine said:


> Upon further review, you should be careful here; of the $0.27 in earnings in the last 9 months, $0.21 or nearly 80% of net earnings are due to gains on sales of property, land and buildings. If you adjusted out those one-time gains, the P/E would be much higher. Despite higher sales, they essentially had the same profit as last year. This is reflected in their declining margins. There would have been a 7-8% decline in book value without the one time asset sales, which would have been consistent with their dividend payout. This makes more sense to me, now.


I also don't like the fact the CEO left Mid October either. 
Going to keep it on the watch list and see what the next 1/4 brings.


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