Our energy services picks are doing nicely in 2017, but it’s still early days for the recovery
Our Blog from December 2016 featured ‘4 energy stocks to watch in 2017’ and it’s certainly been an encouraging start to 2017 for these micro-caps with the average share price rise over 20% in quick time. Our Blog here comments on recent updates from several of these recovery plays all of which could offer plenty more upside over the coming months…and plenty of excitement!
The performance from our 4 energy services selections over this short period is all the more pleasing in the context of the PHLX Oil Service Sector (OSX) which is actually flat over the same period. We referred to Thalassa Holdings (AIM:THAL) as both a recovery and deep value play, with a twist! We also commented how the current market capitalisation of this business implied zero value for its operating businesses WGP and ARL, with WGP having 2 very valuable long terms contracts with oil majors. With a strong cash position it was therefore well placed to being a long-term survivor…