...get your fact correct first. then you can ask questions like yours.
SLCA reported 2nd quarter 2013 earnings of $0.38 per share on July 31, 2013. This met the consensus of the 11 analysts following the company.
The next earnings announcement from SLCA is expected the week of November 6, 2013.
HERE'S THE NUMBERS EXTRAPOLATED BY WF RESEARCH FOLLOWING 2Q CALL.
TONS SOLD P/P 1,035.6 TONS Q3 E VS 988.1 TONS Q2 ACTUAL ( 4.8% INCREASE).
PRICE REALIZED P/P $79.07 / TON Q3 E VS $78.66 / TON Q2 ACTUAL ( 5.2% INCREASE)
THESE 3Q NUMBERS ARE LUDICROUS SHOULD SLCA EXPERIENCE THE SAME JUMP UP IN DEMAND (+ 43%) THAT CRR EXPERIENCED. HANG ON TO YOUR HAT BOYS WE ARE GOING TO HAVE A HUGE THURSDAY FOLLOWING THE EPS RELEASE WED NIGHT AND THE CONFERENCE CALL FOLLOWING.
Good points. CRR increased their earnings per share even with the price of sand the same and the rest of their business suffering. This quarter SLCA should do similar and next quarter more. SLCA also has a 25% short interest. Shorts are hard to shake sometimes, but when they go the stock price can go up in a hurry. Would like to put more money in SLCA and HCLP now, but am involved heavily with CLF which is going up in a hurry because of a huge run of shorts covering. If I am missing something on the downside, please let me know.
EOG resources has changed fracking in a significant way pertaining to SLCA. The amount of proppant (sand) used is now significantly higher with this new technique. Carbo ceramics reported an increase of 48% in proppant sales and smashed earnings. SLCA is the largest publicly traded provider of sand in the country and I also think they will not only beat earnings, but smash them. Even if fracking levels move sideways, more sand will be needed,
Even though there P/E may be considered a little high (23), their PEG ratio is under 1, which is a good thing, Forbes magazine in October named U.S. Silca #8 of America's best small companies. Take all this and I do not think I am out of line saying $40-45 in the near future is not that far off.
Taking a look at HCLP is not a bad idea either. It may be a better buy than SLCA. Me, I am going to hold both through their earnings on Tuesday, one before the bell and the other after.
I would be interested in your thoughts on the subject also.