I don't know about everyone else but I'm in this
for a 10 dollar loss so far! Shame on me, I know, but
the numbers were looking good up until the last
quarter. I know it was already being discounted before
last quarter results but the IBD earnings rating was
holding steady above a 90 - which is great. I bought this
dog when Investors Business Daily wrote a whole
article on how promising the prospects were for CFK -
however, it has done nothing but sank to a new low! It's
embarrasing to say I've held on so long. Now I hear that
they've formed a seperate entity to handle a lot of their
business....is this the beginning of a migration from CE
Franklin to the new company (whose name escapes me) and
then a belly up of CFK?
This thing is a DOG! And I
don't beleive the management gives a crap about us
shareholders. They are doiong nothing to hold up share value,
they are not even trying to expand out of the Canada
I hope I'm wrong but it don't look good from here!
the problem is that natural gas/crude prices are
going to be in the toilet for atleast for 1 1/2 years.
but I agree CFK is a diamond in the rough and I would
love to buy 25,000 shares at a buck and ride it to
yes, cfk is definitely a survivor - controlled by
probably the savviest oil patch investors in existenc, scf
partners in houston. these guys will consolidate the
distribution part of the oil patch. cfk known to be actively
looking for acquisitions yet with discipline. stocks
pretty washed out, seems you have to buy it when you
can, impossible to buy when everyone wants it.
Be carefull! Mother Russia needs hard currency
and they are selling oil/natural gas at any cost!
Keep in mind that they have more reserves then our
Arab friends (or close enough for government work). I
like the company but I think it could go as low as $1
per share. Finally, don't forget about tax loss
selling in late October and in November.
I also bought at 10 & like a dumbie....bought
more at 7.
IBD's report influenced me as well.
Don't think I'll renew my subscription in Sept. This
wasn't the only one that had a great writeup & dumped.
I'm very disappointed. good luck
You guys both seem to have bought CFK w/o doing
any work on the company (except read a biased article
in IBD). The fact is that CFK is dirt cheap now, but
because it's an oil services (really distribution of oil
services products) company, it's going to move with
oil/gas prices and the oil services industry (the whole
group has gotten killed). The core driver for CFK's
business is the amount of drilling/development activity
(which is a direct function of oil/gas
CFK is the leader (#1 market share) in distribution
of oil services products in Canada (a promising
market, given the amount of pipeline construction being
done in Canada -- this ought to spark drilling
activity in Canada, assuming prices improve from current
The company is controlled by Simmons & Company -- a
well known Texas-based investment firm that
specializes in the energy industry (I think it's headed by
Harold Simmons). He's been in CFK for a number of years
now (and he's probably still making money here at
$4), and my bet is that he'll look to exit his
investment in CFK at some point in the next couple years
(assuming the market rebounds). That's just because
leveraged buyout firms have a set investment horizon over
which they must return money to their own
I think the most natural buyer for CFK is National
Oilwell (CFK's U.S. based competitor). Buying CFK would
give Natl. Oilwell a leading market position throught
the U.S. & Canada.
So, while there are never
any guarantees (except that IBD is a worthless
newspaper), I think the investment opportunity at CFK is
compelling -- you have an interested shareholder in Simmons
who will look to create value for himself (and other
shareholders in the process). One just needs the patience to
see oil/gas prices improve.