After the  failed    take over bid,   Gord threw alot  of numbers bout  sales,  work in progress,     billings etc.  I  will   be  very interested in seeing the cash  position exiting  2012.  If  the cash position is  very strong,    We  might   see HYD   start pouncing on   depressed players   such as  Leader    and even  Poseidon  could be challenged   and   Calmena  also.  The one trend  I  am noticing  with the  recent spike in  RIM  is   that despite the   beatings  by the analysts   RIM   really  did a masterful  job in converting   non  core assets,  inventory,  and   GSA  reductions into    COLD HARD  CASH.    No  one expected  them  to  have almost  3  B  in cash  heading into the  BB10   launch.      I  think  the double off that low  was  the reward for good cash management  in  challenging times.  This allows  the    company to   be able to  do the things  it wants  to regarding  bb10  launch.  

 

  I  have digressed     using RIM as an example because I  think  we might see the same scenario unfold here.  Again  I  am waiting  for the numbers. We were led to  think    because of  the Do All  posturing that  Q3 was going to be terrible and    HYD was going to  have to pay  big penalties on a late contract etc.   Gord always   keeps cards  close  to the  vest    so  I  was wondering why  the  quiet accountant all of a sudden threw some  huge numbers   out there.   I   cannot  gain  from my usual  sources much about the  Houston operation.   I  also  dont really  know why the  news   flow stopped  lately.  I    will see  how the cash  sits at   Q4 2012   but I   got a feeling there are a few    hidden cards   that  might unfold.  I  dont know if  HYD  will    continue to  convert non  core assets into  cash    which has  kept the company away from the  banks,  financings,  and debt covenants  or  if there is a grander design     either for acquisitions  or  as   working capital  buffers for even bigger rig builds in 2013. 

 

I  think  that cash   will    be king  in 2013 . I  think all companies  that  are struggling  with low cash  will pay dearly   for financing  or  be forced to   issue equity at   unfavourable terms. I  am  watching how   HYD  and  RIM  (  too cash rich companies  )  will   perform in 2013  and am  looking for  more companies  like these. Cash rich companies  with good sales  and  tight fiscal discipline offer  multi bagger  potential as operating effeciencies   increase and salles rise. 

There is  another  link  I am curious about also. ESI    has always been    HYD's biggest customer. They   have exited 2012    as one of the   better  performing drillers  and they     by far and away generate  more international sales than any other  driller. They are  contracted  heavily  by     Penn   West and  CNQ  . Murray Edwards  is  the   founder of both  ESI  and  CNQ  and the biggest shareholder    in Penn  West.   On the TV show     on Discovery   "license to  Drill  "  a Penn West  crew was using a   Hyduke rig.   I   have the feeling that  the  Houston  operation was  built  for new rig builds for  ESI's  international  customers.  I  do  not think  for a moment  that  HYD  would have  not undertaken  such a  large  operation had it not been   "  promised a floor   " amount of business  with  ESI for such an  undertaking.  If we see early in 2013  some announcements  for new internationa rig  builds  for the  Houston  operation   this would support my hypothesis.      Nisku  would  service  Canada and the Bakken  and    Houston would service Texarkana  and the Americas  and  Eurasia as it is a   large accessible port.