Precision Drilling Could Double

Precision Drilling (PDS) could easily double in price in the next 12-18 months. SeekingAlpha.com has a transcript of the 4th quarter 2009 earnings report. Some of the details of the report included an increase in rig counts and earnings. They have also been able to greatly reduce their debt.

Precision is now the largest active driller in North America with more than 300 rigs in operation. They are also located in several of the hottest spots in North America like the Bakken, Horn River, Marcellus, Haynesville, and the Cardium oil area in Alberta.

Another reason for PDS to go higher is that the price of oil will probably go up in the next year. China and India have a lot of people who are buying cars for the first time. This means that oil and gasoline supplies will eventually get squeezed. This theme is like the 90s were for tech stocks. A lot of people were buying computers and cellphones for the first time as well as getting on the internet.