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Friedman Industries, Incorporated Message Board

  • davebugs davebugs Apr 19, 2012 9:27 AM Flag

    ? about slow down in gas drillind and FRD effect

    I'm here because sophie mentioned this stock on another small mostly metal company's MB.

    I live in PA where a lot of especially gas drilling/fracking is going on.

    Now that the price of gas is in the crapper and drilling for it seems to be slowing down from the rediculous pace around here how do folks think this effects FRD?

    With the price of gas I'd think the same thing is happenning everywhere. So I'm wondering how this slowdown after the book of the past few years may effect this very small company.

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    • Dave, FRD is a different kind of stock. Tubular has contributed a lot to growth, and NG/oil drill decline would obviously be a serious negative in general for this industry. But FRD is run in kind of a just-in-time way. If business drops, FRD starts cutting expenses immediately. They will also cut the dividend when there's less cash available, though to be fair dividends may be "cumulative". See the large one time dividend payment after a few quarters of paying a small dividend. Everything is JIT.

 
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