Where can you find a company with a P/E of 9, yield of 4%, growing earnings at over 70% yearly? The answer is in Canada’s oil patch. Canyon Services Group (FRC.TO) provides drilling services for oil and gas companies extracting hydrocarbons from the massive shale beds located in Canada. This well-managed company, in the latest fiscal year, showed a 25% net margin and 30% return on equity. This is the cheapest growth stock I’ve seen in a long time. http://jstradingnotes.wordpress.com/2012/03/09/cheap-oil-service/
There are still fears of capex implosion. I don't think that will happen. Natural gas has bottomed, and the Saudi need oil at or above this point in my view -- probably north of $90 for them to really like it.
Drillers and servicers with high and sustainable dividends will do well from here. The sell-off created a great buying opportunity.
Canyon simply trades in concert with west texas crude spot pricing. I would NEVER make the mistake of calling this a growth stock. This is a classic commodity stock, and when oil prices crash this company will get snuffed.