I think MRBGuy above is on the money. This company needs consolidation big time but I guess if a big boy asks for rigs and you say no, you don't get asked again?
Trouble is the business is lumpy..cant just add one rig I guess every year. Cant say to a customer we'll supply 1 rig and you get the other 3 from Joe Bloggs down the road.
They also have a new division, down hole software analysis. That could, like anything IT related, suck working capital like nobodies business, so I would be cautious myself, utilize the existing rigs and generate cash like crazy.
Work up the software division and if its that good, get it out on the world stage?
SWK Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
