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Posted: Friday Nov 25 4:49:03PM 2011
Eresearch report with 1.40 price target
Posted: Tuesday Nov 15 7:15:02PM 2011
Leader Energy came in with great Q3 numbers. 10million gross revs, 2.2 million net profit and .11 eps!
Great numbers for a C$.92 stock. Q4 should be better due to new equipment being put into service.
Posted: Friday Oct 14 9:53:20AM 2011
eresearch update on Leader Energy
Posted: Wednesday Aug 17 8:22:02AM 2011
Leader -.05 to C$.70 Q2 was much worse than I expected. Revs were down but the big issue is increase in costs. The company is trying to ride thru the bad spring breakup and hired more staff to get ready for the big demand. They think that drillers will demand more services to cram as much activity into the remainder of 2011 as possible. Company is also expecting new equipment to boost revs.
Short term impact is bad and we will have to wait until Q3 to see any positive impacts. The extended spring breakup could also have a carryover impact into Q3 so historical comparisons may be tough.
I am holding here because I like the company but this report was an unpleasant surprise.
Posted: Thursday Jun 23 8:57:42PM 2011
Leader is C$.83. They earned .05eps for Q1 after deducting 1.4million for charges related to refinancing their convertible debt. The refi prevented the issuance of 31million shares at .40. Leader now has 19million shares out.
Without the 1.4million non cash charge, they would have earned .14eps so the future looks bright. They should earn .25 to .35eps for 2011 ad are very undervalued at .83.
Posted: Monday May 30 8:57:59PM 2011
Update to eresearch report. Still recommends buy with C$1.90 target
Posted: Wednesday May 11 11:31:00AM 2011
eresearch report on LEA.v target is 1.88
Good explanation of what Leader does
Posted: Wednesday Apr 20 7:17:57AM 2011
there were several one time charges. This is a problem with small companies. They only bring in the CPA for the annual report. so all the adjustments are made in Q4. Leader made a profit for Q4 but it was way down from Q3, not an improvement. This lack of continuity and consistency will hurt Leader until they can prove they can generate consistent, incremental increases in revs and eps.
Have to wait for Q1 to see if charges were mostly one time or if something has changed with gross margins and G&A permanently for the worse. I expect a much better Q1 report.
Posted: Tuesday Apr 19 8:50:01AM 2011
Leader taking a huge hit today, with what looks like a pretty bad Q4. Looks like revenues were decent, but earnings were way below Q3. Definitely not the .10 eps expected for those revenue levels. Anyone have an idea of what happened?
Posted: Friday Feb 18 11:06:31AM 2011
PR states that 2010 gross revs are around 26million. That means Q4 will be around 8million and an eps of .10+ should be coming. Add some more revs in Q1 and you are talking some serious undervaluation.
2011 eps could easily be in the .30 range and stock price should be in the 2.50-3.50 range.
I added yesterday at .93 and am trying to pick up some more around a buck. Bobwins
Posted: Friday Feb 18 8:19:31AM 2011
halt and resumption in Lea.v. This is a major financial restructuring by Leader, preventing the issuance of up to 31 million new shares. The last paragraph sounds pretty positive about both 2010 and 2011 results. Bobwins
Feb 18, 2011 10:56 ET
CALGARY, ALBERTA--(Marketwire - Feb. 18, 2011) - Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA) is pleased to announce that it has completed its previously announced three-year secured debt facility agreement in the principal amount of $15,000,000. The facility bears interest at an annual rate of 12% compounded and payable quarterly, and is repayable at any time without penalty subject to the approval of its senior lender. Under the terms of the financing, the lender was issued 4 million share purchase warrants exercisable at
.65 for three years. Leader will use existing working capital and proceeds from the new facility to refinance its existing convertible debt.
As previously announced, Leader reached an agreement with holders of its 10% convertible subordinated debentures to repurchase 95.4% of the total amount outstanding. Leader issued $15,000,000 of debentures on February 28, 2007, of which $13,160,000 was outstanding as of January 25, 2011. The debentures were convertible at
.40 per share and would have matured on March 31, 2012.
Leader will pay $12,560,000 of debenture principal plus $1,400,000 of deferred interest at 110% of face value, for a total of $15,356,000. Additionally the Company will pay interest owing per the debenture agreement up until February 18, 2011 totalling approximately $755,000. As of February 18, 2011, a total of $2,140,000 of debentures was converted to common shares of the Company.
Whitehorn Merchant Capital Inc. provided financial advisory services to Leader with regards to the new debt facility and in addition to cash compensation, received 250,000 share purchase warrants exercisable at
.60 for two years.
Leader continues to experience robust demand for its services. Revenue for the year ended December 31, 2010 will approximate $26 million. In addition, revenue for the current year to date is higher than previously expected. In 2011, the Company is planning a modest capital expenditure program including new coiled tubing, nitrogen, and fluid pumping equipment. Leader anticipates releasing fiscal 2010 results during the third week of April 2011.
Posted: Thursday Feb 17 2:24:18PM 2011
LEA.v +.05 to C$.95 Leader keeps climbing. This is a low p/e value microcap in a hot industry. More wells are being drilled in Canada and the US. There are wait times building for wells to be completed due to lack of trained crews and equipment. I expect this to be a C$2+ stock towards the end of 2011. They are making good profits(.08eps Q3) and have refinanced some bad convertibles. Future looks good.
Posted: Tuesday Jan 25 12:57:15PM 2011
found this a little late. Leader is a small energy services firm. Profitable and very cheap. .08 eps last qtr. Big overhang of convert debt is being paid off so potential 31 million shares at .40 will NOT be issued.
Current outstanding around 17 million shares.
Should make good money in Q4 and Q1 before spring breakup slows down revs in Q2.
Just got new coiled tubing unit so total revs should go up more. If they can make .08 for 3 qtrs and break even in Q2, this is selling for around 3X fwd eps.