CAPD - Capital Drilling - Long

Capital Drilling Ltd. is a drilling services company, which engages in the provision of exploration, development, grade control, blast hole, and energy drilling services to mineral exploration and mining companies.

In Q4 of 2019, revenue increased 4.8% to $30.7m (US). Cash in the bank was $4.4m (US) and the current rig count is 95. The last trading update (RNS 0012A - 16th Jan 2020) seamed quite good (overall) to me and it looks a promising company.

Looking back over the last 12 months or so, price now seams to be back down to around the 38.2% fib, having bounced off the daily 200ma. It is not particularly oversold on the daily, but it is getting that way. The weekly shows price above the 50/100/200 moving averages, and all are in a nice up trend.

I can see this rising again over the next few weeks to warrant a potential 20% return. It isn’t an especially liquid stock and it doesn’t seam to take much volume to move it (either way). Which may explain why the recent drop appears a bit over done.

Position taken at 59.5p.

Trade closed manually: Well this one didn’t quite go as planned. The rapid change of the economic climate around the world put stop to that.

However, patience is a wonderful thing. I have now closed the position this week at pretty much what my entry price was. Nothing lost, nothing much gained.

The decision has nothing to do with the company. But rather one which revolves around drastically reducing my own exposure to equities in general during H1.

Good luck to all.