Pulse Data needs to expand it's market

               Pulse Data is a stock I have started to follow more closely just recently.It's revenues and earnings have fallen a considerable amount since 2014 and even from 2015.It's big item is it's data library sales as there is less need for precise data on the size of oil pools when the oil price is down so much.But it appears to have bottomed out and taking a positive bounce upwards.Revenues have increased by 54% -from $1.8 million to$2.7 million for the quarter.Cash EBITDA has grown from $266,000 to $1.3 million while free cash flow is up from $255,000 to $1.3 million.So it is possible that oil and natural gas producers are starting to see Pulse as a way of cutting costs in a rough pricing environment.
       Financially Speaking
  Pulse has not been  dormant however;it has purchased and cancelled 584,000 common shares at an average price of $2.41 per share.It is now debt free and in fact has cash on hand of almost $8 million.These financial metrics are good but will not bring Pulse Data back to it's 2014 price level.In order to do that it must increase it's data library sales and introduce some new products.Just as Bombardier did by developing and introducing it's CRJ 1000 seen here in this picture.Pulse needs something  of a new revenue producer.        

A Pristine Balance Sheet

           Pulse Data has what is considered to be a pristine balance sheet.It has no debt at all and it has just reduced the number of outstanding shares on it's balance sheet.But it must find a way to increase it's revenues, and hence earnings to the level in 2015.With a conventional oil play an oil producer needs to know the size of it's pool only once ( or maybe twice) but many oil plays have extended pools that are associated with the main pools.Finding extended oil pools is much less costly than discovering a new yet nearby oil pool.Also there are in certain oil or gas bearing formations several layers of hydrocarbons.In these cases Pulse must be able to zero in on the dimensions and exact location of the pools on all layers.This may make the difference between a little or a substantial profit for the producer.Not only should Pulse do this but market it so that it's client base know of this fairly new profit-producing product.
                                     Outlook for 2017         

         This blog sees Pulse Data gradually rising to the $3.00 -$3.25 area in 2017.The next two quarters will likely see increases in revenues above the level seen in this quarter.It is also true that Pulse has a considerable amount of cash on hand and an unused $30 million revolving credit facility.This blog sees that it will likely put more invested cash into it's subsidiary DCM and maybe ENT or PRW.The prices of all three subsidiaries is at historically low levels and Pulse has lots of cash.       use Workathon for business forecasts use Workathon for business consulting  use Workathon for business consulting