Poseidon Concepts (TSX: PSN) Innovation, Growth, Dividend

Poseidon Concepts (TSX: PSN.TO) was the top stock on my Priority List stock scan this weekend. This company is a new idea and its stock is printing new highs. The company essentially provides massive above-ground pools to the drilling industry. While that might sound odd, the 8% dividend and recent breakout means it's worth a serious look. Here is a chart and more about the company.

As you can see in the chart, Poseidon had its initial public offering in November. In spite of the fact that the TSX index has gone nowhere since then, PSN has managed to find its footing and mount an impressive rally with solid volume. Although this stock has great potential for 2012 it is currently not at an ideal buy-point. The prudent approach would be to stalk PSN, waiting for a low-risk entry point.

So what is this company all about? Here's more from poseidonconcepts.com:

Poseidon Concepts Corp. is a customer-focused provider of safe, innovative fluid handling solutions to the oil and natural gas sector across North America. Poseidon’s growing fleet of tanks is deployed in unconventional plays across the continent, from the Eagle Ford in south Texas to the Montney in northeast British Columbia.

It was a story of responding to necessity. Our E&P company’s well completions costs had been going up, and the scarcity of key services was causing delays. At the same time, our frac jobs were getting larger as we started to drill horizontal wells completed with multi-stage fracturing. That meant our fluid needs were rising as well, and instead of needing 10 or 20 steel tanks to store our fracturing and flowback fluids, we were finding ourselves trying to source up to 80. We also tried using lined pits, but there were environmental drawbacks. There had to be a better way!

• Easy to set up even in cold weather. 
• Patented ingenious fastening system. Fast and easy to build – without a single bolt.
• January 2011, first customer in the Bakken play in North Dakota.
• Active in 14 states and in virtually every major unconventional play across Western Canada. 

Poseidon has established a unique product offering and business model that enables us to provide investors with the rare combination of growth, yield, and sustainability – something easily advertised but rarely achieved. Against the macro backdrop of robust horizontal drilling activity and fracturing service intensity, Poseidon’s near-term growth will be focused on further North American market penetration, while our extensive long-term contracts provide the ability to pay an attractive and sustainable dividend.

It takes something new to create a startling advance in the price of a stock.  - William O'Neill

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