Precision Drilling (PDS), the Canadian provider of services to onshore oil producers, has plunged 89% in the last five years. Given the cyclical nature of the energy sector, some investors may conclude that the stock has become a great bargain. However, the stock is highly risky.
Business overview
Even before the coronavirus crisis, Precision Drilling was struggling to become profitable due to a dramatic shift in the strategy of oil producers, who have become markedly conservative in their expenses in recent years and try to operate within the limits posed by their cash