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Trinidad Drilling Ltd. (OTCPK:TDGCF) was hit hard by the global economic crisis in 2008, falling more than 58% from start to finish, but over the past few weeks, with oil on a rally due to the Gaza Strip conflict, the stock is showing show signs of life. Including 10% jump on Tuesday morning, the stock has climbed more than 33% since Dec. 24, 2008.

For Raymond James analyst Andrew Bradford, the rebound in Trinidad shares is overdue, particularly when considering the company's fundamentals in relation to its oilfield services peers.

"We believe Trinidad is a strong operator in both Canada and the U.S. and that its share price will reflect the cash flow that these operations generate," he said in a note to clients.

The analyst said that Trinidad is significantly outperforming its Canadian contract drilling peers and its U.S. utilization is above most larger peers and expected to widen as the downturn deepens.

He added that Trinidad's above-average debt levels have overshadowed its strong operational performance in the past year, but he doesn't expect that to continue for long.

He maintained his "strong buy" rating on the stock with a 12-month price target of C$10, but noted the company's convertible debentures may provide a lower risk investment opportunity for investors who appreciate Trinidad's operational performance, but are wary of the equity risk.

Source: Trinidad Drilling Gains Some Traction