Top Finncap idea for 201710 Jan 2017 15:14
Finncap have released their top 10 stock ideas for 2017. CAPD is one of them ((I also hold IDEA - not impressed with most of the others, as too expensive etc):
http ://www.iii.co.uk/articles/381415/top-10-small-cap-share-tips-2017
"Capital Drilling
Using the downturn wisely by increasing capacity in its rig fleet, Capital Drilling (CAPD) is well prepared for the next phase of its cyclical story. Despite low activity levels, it's managed to stay profitable and has used its cash pot to pay out above-average dividends. Further contract wins should drop straight to the bottom line.
Largely exposed to African gold mining contracts, the swing in sentiment towards the yellow metal underpinned the group's share price turnaround, further supported by the bounce in other minerals like copper and iron ore.
Not only are 80% of its revenues multi-year contracts - so there is turnover visibility - but nearly half its customers are cash generative mining giants with strong balance sheets.
Capital shares surged by nearly 200% last year from their low of 20p in January 2016, but are still changing hands for less-than half their previous peak.
Luckily for Capital, geopolitical risk is unlikely to ease in 2017, so gold should benefit from its safe-haven status, although a rise in US interest rates could weaken the price somewhat. An 85p target price gives the shares 42% potential upside from their 60p share price."