Mr. Mills reports on the first quarter (ending September 2011) of Cabo’s new fiscal year, which showed revenues of $16.9 million and earnings up 65% as compared to the first quarter of fiscal 2010.
In his report, Mr. Mills, a Chartered Financial Analyst with Beacon Securities who has closely followed and reported on the drilling industry for a number of years, states “There are some encouraging signs out of these Q1 results. Profitability is improving and record revenues reflect the underlying demand for drilling services.” Furthermore, in his assessment of fiscal 2012, Mr. Mills makes a number of key forecasts, including a share price target of $0.35 and writes “We believe that investors will now start to re-look at this story and expect to see the share price finally start moving in a positive direction”.
To read the complete report investors can follow this link to Beacon Securities’ web site: http://www.beaconsecurities.ca/research. Readers must register at the research page to view the reports; however there is no charge for registration or for viewing the reports.
It is also interesting to see that the Globe & Mail has taken note of Cabo’s significant profit and the favourable report from Mr. Mills: http://www.theglobeandmail.com/globe-investor/investment-ideas/features/eye-on-equities/analyst-is-sweet-on-cabo-drilling/article2285949/.
It would certainly seem that the market place has its eye on this company, and that 2012 looks to be a very good year for Cabo Drilling.
Cabo Drilling Corp. is not responsible for the expressed projections, estimates and opinions contained in the reports created by Beacon Securities Limited.