The shorts are hoping that oil is going to collapse like Nat gas did. Also the rigs that have moved from Nat Gas basins to oily basins have put downward pressure on drilling margins. Other thoughts are no barriers to entry the fear is there will be an overbuild of rigs leading to additional margin compression. All the negativity about fracking. Earthquakes, water use, aquifer contamination. Oh I forgot to mention Guar costs. Lastly Obama and the green movement. I think it is all overblown and this is a buy of a lifetime.
I think the short case is sort of timing based. All the risks to CJES are macro (regulation, overbuild, rig count), so potentially you could see a rapid selloff and make a ton of money. The bull case is slow and steady, and there's all the IPO shares providing overhead resistance, so shorts figure they have time to get out if the trade starts moving away from them.
However with shorts as % of float near record highs, there isn't much room for error anymore. They are playing with fire.
I'm long this stock and have been for several months. Just curious as to why the short loadup on this stock. This stock has great earnings and is undervalued compared to its peers. I don't see fracking going away esp in the states that CJES operates. I think its only a matter of time until this stock either runs up in price or is bought out by a bigger company. Either way I would not want to be short.