Fabulous release from SWK today! BOTH total # of rigs in work is rising plus margins/rig due to improved effeciency from the technical advances on Swick's rigs. Debt almost gone and less shares on issue. EPS in mid-late Feb will tell the story. The decision to largely abandon the low margin surface drilling and greenfield sites (which sometimes fail to pay after folding)... and to focus on the higher end UG work has proved to be a game changer. It's useless to quote a PE without NET earnings. EPS is the only figure to use in this type of business. For those who climbed-in at 25c it's exc result. Should one buy SWK today? With substantial improvements in effeciency still to come (e.g. automated rod handling) it's certainly worth invetigating. I'm holding as Mr Mkt digests what a strong niche driller SWK has become. What a change from 2-3 yrs ago!
SWK Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
