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CARBO Ceramics Inc. Message Board

  • humbled32 humbled32 Aug 9, 2011 7:51 PM Flag

    I am still confused

    What do you guys think?
    I've been brainstorming with myself.
    The only reason I can see for the fall in CRR is the correlated fall in oil prices, but this correlation seems wrong, as CRR is getting its business regardless of the oil prices.
    I believe it is irrational market behavior or some ETF of mass destruction that is clubbering this stock down regardless of fundamentals.
    What are your thoughts?

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    • The capacity is a problem now but they are adding production line and factories to increase production for the next 18 month. Production will increase 50%.
      About technics that uses less proppants two answers:
      1. The boom in fracking is so big that even with 50% decrease Carbo profits will increase 30% or more annually.
      2. Their most lucrative product ceramic proppants is needed for deeper drilling and I am confident that these proppant will be very much needed because of the high pressure.
      About making fracking illegal, I don't see that happening the worst that may happen that some hydraulic liquids may be banned or some extra safety measures will be imposed to prevent contamination of the water table.
      This company is a buy buy buy!

    • Humbled. You need to take a look at the broad market. Every single stock in the S&P 500 was down yesterday and most have been down for the last 2 weeks. This is the overall market/ETF/risk off down swoon. CRR has turned the corner and should march back to $180 in the next 3 months. 3rd and 4th quarters will be records for CRR. Enjoy the ride back up.

      • 2 Replies to mdickirson
      • dianesails Aug 18, 2011 1:44 PM Flag

        Recent article on the future growth of CRR is in question. Oil service companies are developing a more efficient fracturing process that would use less proppant than current technologies.
        Author, Eric Fox
        Another article stated the Ceramic proppant that has driven them to the top is marketed at a very high cost, competition will challenge that product with new similar and provide it at a much lesser cost. Their market position soon tobe challenged. Use caution.

      • yes, I hope so.
        My problem with CRR is that it is the company I own shares of, which I know the least off.
        The other companies I have in my portfolio I can tell by heart earnings and growth prospects, my CRR knowledge is limited, I bought on a recommendation of someone I trust and has not failed me before. This was the first time I went in blind, I admit. So I am confused.
        I admit my mistakes loudly so I don't repeat them :)

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