consolidation is needed in the market. if they consolidate then price of sand per unit do increase and stabilized so everything will be winner. The purchase will be cash and shares of SLCA so banks and owners will be happy too as they own some percentage of the new company. I do think it will happen we will see in soon. But in any case, sand prices seems like do bottom out as it started to rise as per last week If oil prices stay or rise around $45-$50 i see HCLP above $10 if SLCA wont buy them.
i think im 51% sure HCLP will be bought in 1 month as they said on the conference , industry consolidations might occur soon, and also today Silica Holding issued new shares and their statement said:
"U.S. Silica intends to use the net proceeds of the offering for general corporate purposes including the potential acquisition of complementary businesses or assets. The offering is expected to close on March 22, 2016, subject to customary closing conditions. "
So this is my complimentary gift to yahoo message board readers, you can make 50% percent in short time.
Sentiment: Strong Buy
Basically they are saying the prices for sand frac is stabilized and the wells are using more sand to offset the price. Their saying cost is so low right now and confident about the business.
I will be the first one to mark it before the market opens. I was at the presentation yesterday on Houston so HCLP wont stay here long . My target price in 1 month around $7.