I also bought at 10 & like a dumbie....bought more at 7. IBD's report influenced me as well. Don't think I'll renew my subscription in Sept. This wasn't the only one that had a great writeup & dumped. I'm very disappointed. good luck
You guys both seem to have bought CFK w/o doing any work on the company (except read a biased article in IBD). The fact is that CFK is dirt cheap now, but because it's an oil services (really distribution of oil services products) company, it's going to move with oil/gas prices and the oil services industry (the whole group has gotten killed). The core driver for CFK's business is the amount of drilling/development activity (which is a direct function of oil/gas prices).
CFK is the leader (#1 market share) in distribution of oil services products in Canada (a promising market, given the amount of pipeline construction being done in Canada -- this ought to spark drilling activity in Canada, assuming prices improve from current levels).
The company is controlled by Simmons & Company -- a well known Texas-based investment firm that specializes in the energy industry (I think it's headed by Harold Simmons). He's been in CFK for a number of years now (and he's probably still making money here at $4), and my bet is that he'll look to exit his investment in CFK at some point in the next couple years (assuming the market rebounds). That's just because leveraged buyout firms have a set investment horizon over which they must return money to their own investors.
I think the most natural buyer for CFK is National Oilwell (CFK's U.S. based competitor). Buying CFK would give Natl. Oilwell a leading market position throught the U.S. & Canada.
So, while there are never any guarantees (except that IBD is a worthless newspaper), I think the investment opportunity at CFK is compelling -- you have an interested shareholder in Simmons who will look to create value for himself (and other shareholders in the process). One just needs the patience to see oil/gas prices improve.
Dear bull_dog9, I completely agree with your assessment! I discovered this stock by just looking up every stock on the AMEX. I was amazed that Canada's largest oil drilling service company was this dirt cheap in price. I noticed that they are buying competitors. Although, I ahve not completed my research of the company, I am close to start accumulating a position. Finally, if the Canadian coulg ever get their crude and natural gas to the U.S.,US producers could be hurting! They got more gas and oil up there then God has! Will Rogers said that they aren't making anymore real estate, they sure as hell aren't making anymore gas or crude. Start taking a position SLOWLY.