Contrarian Alert: More horsepower behind Total Energy Services
    
    
      
    
  

  
    
        Heads up, contrarians.
        Today we look at Total
        Energy Services which is
        off more than 40% since
its June high.
        Q2 results did not help
matters with
        revenue down across all
segments.
        Notably,
        the compression and
process services segment
        or CPS which
        accounted for over 40% of
sales
        fell 77% from Q2 2019.
        However, there was a
glimmer of hope.
        While segment fabrication
sales were down,
        compression fleet rentals
grew
        as measured by horsepower.
        At quarter-end, 33,200
horsepower
        was on rent as
        compared to 31,800
horsepower
        on rent as of June 30,
2019.
        We will have to see if
        the pickup in rentals is a
prelude
        to greater oil patch
business
        or if it is just a blip.
        At this point, there are
        some positive signs for
        growth as management noted
        relatively strong and
stable
        western Canadian natural
gas prices
        had supported the demand
for
        field compression
maintenance activity.
        Meanwhile,
        the stock has attractive
valuations.
        For example, according to
Refinitiv
        the stock trades at
        a price-to-sales ratio of
0.2.
        More importantly, insiders
are buying,
        led by the CEO.
        Get our full report via
INKResearch.com or
        the Canadian Insider Club
at
        CanadianInsider.com.
        This report is not
        a recommendation to buy or
sell securities.