Cabo Drilling (CBE.TSX-V) posts record quarter!
November 14, 2007
Greetings investors!
Gold investors got some nasty surprises last month as the ranks of newly-minted producers released their balance sheets. Start-ups are expensive, alright!
Some mining suppliers did well though. Cabo Drilling (CBE.TSX Venture Exchange) which I’ve followed since last winter recorded its best ever quarter by turning in a profit of $11.68 million Cdn. That’s 11.3% better than the previous high from the 1st quarter of this year, and 54% higher than the same period from a year ago.
Cabo travelled to its 52-week high of +$0.75 Cdn per share on the news last week, and pulled back recently to the $0.55 range.
I rate it a strong buy not just for that and its ongoing business drilling for mining companies, but for the prospect of signing a really big company-making deal down in Panama where it has a subsidiary.
Panama has voted to spend $5 billion over the next several years widening its famous Panama Canal. Wouldn’t it be nice for its shareholders if Cabo got the exclusive contract to provide all drilling services in association with that?
It’s hardly likely, considering the company has only one drill in Central America and it’s booked through the foreseeable on behalf of a handful of juniors with precious and base metals projects. But it’s possible, and I’m an optimist.
Buy.
Careful out there!
Kb
The BarkerLetter on November 14th 2007 in Commodity investing, Gold
