Pulse Data has a tremenduously good quarter and pays special dividend

   On Novemeber1 Pulse Data released it's third quarter report and shreholders  could hardly wait for it.They showed their data library sales were the second highest ever including a $30 million transaction in August.They aslo have $30 million cash on hand and a $30 million availability in their credit facility.
           Performance Compared to 2016     

   
  This year was hugely better than the third quarter in 2016.Revenue was $32 million compared to $6 million.While net earnings were $14 million compared to a $6 million loss and cash EBITDA was $30 million.Free cash flow was $24 million or $.43 per share compared to $4.3 million or $.08 per share.
      Nine Months Perfromance
            The third quarter was so good that it brought the 9 month performance up as well.Cash EBITDA was $33 million or $.60 per share compared to $6 million or $.11 per share in 2016.And it has purchased and cancelled 1.3 million shares.Free cash flow was $26 million or $.48 per share compared to $6 million or $.11 per share in 2016.This again is a dramatic improvement.While the number of wells drilled only went up from 7200 in 2016 to 7550 in 2017.
      But Pulse Data has made other ventures into the data area.It had a substantial position in Data Group Income fund which became Data Communications Management.It has also taken positions in Petrowest and Entrec both of which are in the oil services area.And since the price of oil has moved up in the last two quarters these new subsidiaries have become more profitable.This blog believes that this is perhaps the main reason that revenues are so far ahead of 2016.As the CEO says"We are positioned to grow the Company when accretive opportunities present themselves."And this blog expects that other accretive opportunities will present themselves.
            A Reasonable Joint Venture
         It is not likely that the results are this good just from a $30 million data library sale and a 5% increase in drilling activity.This blog believes that much of the extra increase in revenues was due to the new small subsidiaries acquired both on the data side and the oil services side.If true then the increases seen in the third quarter will be there in the fourth quarter.But this blog recommends another acquisition or a joint venture as PSD has a good amount of cash on hand as well as credit availability.The suggested target is Intrinsyc Technology which has good sales from it's Open -Q computing modules but desperately needs a new application.These computing modules could be used to improve service in a number of areas including field surveying.This would make a good joint venture for both companies.   

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