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Hey Lou ….



I predict a 30 per cent gain by the end of the year, and I am confident we will see it. I think the debt deal they just did is HUGE, and this stock is off to the races. For my limited chart ability, I see $15 by the spring and then much higher.



Canada Pension Plan likes it, and after the last quarterly results, IMO, this stock is off to the races.







Regards,



Gary

Hi Gary,

It looks like you are excited about Precision Drilling Corp. and its prospects. The charts will give us another look at your call and see if you have it lined up for a sweet ride to the penthouse of profit.

The three-year chart indicates that PD started making a move in late September of 2010 as it caught a bounce off of support in the $6.00 range. Currently the stock is knocking on resistance at $10.00 which it will have to move through to reach your target of $15.00.

The late fall and winter are typically active seasons for the oil and natural gas drilling industry in Western Canada as the fields freeze up and allow rigs to be moved onto the targets identified by the exploration and development departments. Prior to freeze up, the sites are usually muddy quagmires that swallow up trucks and equipment.

The six-month chart depicts the healthy move off of $6.25 to its current price of $9.12. The MACD signalled the shift in momentum towards buying in late September and there is a golden cross on the chart as the 50-day moving average has crossed above the 200-day moving average.



The six-month chart for the Oil Services Holders ETF exhibits similar elements as the six month chart for PD. It would appear that the entire sector is on an uptrend. With oil trading over $80.00 a barrel, it should come as no surprise that producers are willing to drill up their prospects to bring new barrels to market.

I think that you have a good opportunity to make your target, but make sure to get off the ride before spring breakup when the rigs are back in the yard waiting for the fields to dry up.





Happy Capitalism!

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