Topic: How To Invest

Pat: What is your recommendation on Poseidon Concepts? Thank you.

Article Excerpt

Poseidon Concepts, $15.53, symbol PSN on Toronto (Shares outstanding: 72.0 million; Market cap: $1.1 billion; www.poseidonconcepts.com), rents its fluid-handling tanks to over 100 customers in the oil and gas industry. In November 2011, Open Range Energy changed its name to Poseidon Concepts after it handed out shares of its oil and gas production interests to its shareholders in November 2011. This new company retained the Open Range Energy name and Toronto symbol ONR. Poseidon kept the tank rental business and began trading on Toronto under the symbol PSN. Shale oil and gas producers rent Poseidon’s tanks to hold fracturing fluid, which they use to break apart the rock and release the oil and gas. Poseidon designed the tanks, but other companies make them. The company now rents about 240 of its tank systems across North America. It believes that its large tanks are more efficient than competing models because they can hold much more fracturing fluid (up to 41,000 barrels), are easier to transport…