Poseidon Concepts Corp, which completed the sale of its water storage and containment system assets to Rockwater Energy Solutions in June and is no longer listed on the Toronto Stock Exchange, is no longer covered in How They Rate.

There are a number of shareholder suits ongoing against the company, which is now under bankruptcy protection in Canada and the US. One US law firm participating is Howard G. Smith of Bensalem, Pennsylvania (888-638-4847).

Given how fast this one imploded, no one should get their hopes up for much restitution. But by the same token shareholders have little to lose, either.

Advice Changes

Essential Energy Services Ltd (TSX: ESN, OTC: EEYUF)–From Hold to Buy < 2.65. Essential has carved out key niches in the drilling services market, with a geographically dispersed service rig fleet and ownership of the largest coil tubing well service fleet in Canada insulating it from ups and downs in drilling activity. That’s not to mention the fact that Bay Street is uniformly bullish on the stock, with all 12 analysts that cover it rating it a “buy.”

Manitoba Telecom Services Inc (TSX: MBT, OTC: MOBAF)–From SELL to Hold. Second-quarter wireless results were solid, and the company reported improving wireline subscriber trends. Cost-cutting efforts have been effective, and the company isn’t exposed to potential competition from a Verizon Communications Inc (NYSE: VZ) entry into Canada.

The Allstream sale was well-timed, as it provided a significant infusion of cash and streamlined operations. Dividend coverage is solid as well.

Penn West Petroleum Ltd (TSX: PWT, NYSE: PWE)–From Hold to Buy < 13. Penn West, which recently slashed its dividend, announced sweeping management changes and embarked on an all-encompassing strategic review, earns an upgrade based on the potential that a buyer might find it compellingly attractive priced at such a steep discount to the value of its assets. It’s for the aggressive only.

Precision Drilling Corp (TSX: PD, NYSE: PDS)–From Hold to Buy < 11. Precision has won more than 50 percent of the Canadian newbuild rig contracts over the last several years, and it should be in good position to win more in coming years.

Second-quarter funds from operations dove by 46 percent to CAD33.8 million, as revenue slipped 1 percent to CAD378.9 million. But management is optimistic about Canadian activity in the second half of 2013 and hinted at new opportunities tied to LNG projects.

Talisman Energy Inc (TSX: TLM, NYSE: TLM)–From Hold to Buy < 12. Talisman is now a perpetual target for takeover speculation. The advice upgrade applies to investors with risk capital who appreciate the fact that there’s no guarantee, or even a better than 50-50 likelihood, of a deal.

Ten Peaks Coffee Company Inc (TSX: TPK, OTC: SWSSF)–From SELL to Hold. Management reported solid numbers for the first half of 2013, with gross profit, net income and EBITDA all up over the same period last year. Cash from operations rose by 26 percent, allowing it to reduce debt and strengthen its balance sheet.

Ten Peaks continued to benefit from declining coffee commodity prices, which led to a drop in revenue but an even larger decrease in cost of sales.Ten Peaks is adding market share on solid performance in the US, where volumes have grown 35 percent over the past three years. Coffee is a tough, volatile business, and it’s a hard model on which to base a dividend-paying business. But recent results earn it an upgrade.

Trinidad Drilling Ltd (TSX: TDG, OTC: TDGCF)–From Hold to Buy < 9.50. Second-quarter funds from operations were off 24 percent to CAD39.1 million, as revenue dipped 5.1 percent to CAD165.4 million on slower US activity.

Management noted stable land-drilling day-rates despite weaker demand and strong competition. Its deepwater focus is a key advantage. Bay Street is also uniformly bullish, with 18 “buys” versus zero “hold” and zero “sells.”

Rating Changes