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CARBO Ceramics Inc. Message Board

  • nofence81 nofence81 Jul 27, 2012 10:07 AM Flag

    CEO overconfidence a big mistake

    Last fall, after months of bad news from the natural gas and coal sectors, the CEO should have stopped the development of the new plants, put them on idle.
    Instead, he continued and even started the production, building inventory, at a time when the demand was faltering badly and competitors (Russians and Chineses) were lowering their price significantly.
    The only reason why the drop of the stockprice has been orderly is that CRR has no debt and still managing to maintain their revenue.
    Now investors have to hope that their specific energy sector will stabilize and come back in fall.

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    • exceptionalintelligence exceptionalintelligence Jul 30, 2012 12:39 PM Flag

      Well you make sense. Do you have an opinion about the best way to keep abreast of developments in natural gas and/or other applicable sector news?

    • With all due respect to everyone, The CEO is an excellent technician when it comes to making and marketing frac material and supplies and the CFO is an equally excellent accountant but they don't have a finance person on board to work with the financial markets.

      CRR has a story to tell but I think the Houston guys think it will tell itself but things just don't work that way any more. I would have thought the NY stockholders, Morris and Rubin, would have put a high powered finance guy in place when the stock was in the upper 100's.

      • 2 Replies to BShaef
      • What do you think a "finance person" would do? Looks to me like they just have no idea at all what their sales will be going forward -- and the market hates uncertainty most of all.

      • The product is awesome first of all...The copycat knock off from CHINA is just that but it takes 20% more volume + transportation just to do what CRR's can do. CRR building plants AT the Bakken and Eagleford (they already have warehousing/conveyor systems set up in So. Tex) is another example of financial flexibility... They provide a better quality product and a quicker shipping time as well no limits as to quantities which all around makes the equation more efficient. Raising the dividend is a reflection of cash flow strength and they should continue to do that even in a rough margin environment... Multiple compression is simply a function separating yourself from the pack...They continue to prove the value and will continue to be the leader...I suspect they will continue to get a better handle on efficiency and I would NOT be surprised to see margins steady out from here...Canada being slow to enter this time in my opinion was the reason for the significant drop in the stock as well margin pressure...It'll be back in the 100's even if they start a new buyback program sooner rather than later...I believe this week they finished the old one.......... Latin America is a plus fyi

    • exceptionalintelligence exceptionalintelligence Jul 27, 2012 10:14 AM Flag


      You call 8% up followed by 20% down in 2 days ORDERLY???

12.67+0.05(+0.40%)Jul 22 4:02 PMEDT