Would have been a screaming buy by my criteria. But I just didn't know about it. After today's rise, too much of the upside is already reflected in the stock for it to be advisable to buy now.
Wish there had been more discussion of Marchi in the Q & A. Mgt seems to feel it opens up a lot of doors to them. It would be nice if they would elaborate on that. Perhaps we will get more on that in a quarter or two.
I wonder about the acquisition, thought. Seems like they paid a lot. The 30 mil cash portion appears to be equal to their net cash, so now their net cash will be about 0, if I have the numbers right. I guess that's OK as long as the business does well. Listening to the conf call replay right now. Hope they say something about the acquisition.
One thing strikes me as odd, there doesn't even seem to be an Investor Relations button on their web site. Any company that has a publicly traded stock ought to have an IR link on their web site.
One might argue, if a lot of these oil & gas companies go bankrupt then that will dry up a lot of supply and prices will shoot back up. However, we all know that when companies go bankrupt, it doesn't mean they shut down. They may restructure. And they would be on a lot more solid footing financially if the shareholders and debtholders were wiped out.
Oil & gas companies are facing ultra depressed prices. Also, most of them carry a large debt burden. Who's to say that prices will recover before a lot of these companies go out of business, even some of the big players in the business?
One might be skeptical that a whole industry sector could go belly up. But consider the airlines. In the past, the airlines would pretty much all go bankrupt periodically.
Hard to show good results when your business involves selling a commodity product whose price has fallen into the dumpster.
MTSN at highs, UTEK at lows. This is one factor that points toward UTEK being the better value of the two right now. Past performance is no predictor of future results.
I'm not familiar with this company, but it would seem that the key issue is:
Do these guys have some sort of competitive edge that gives them a leg up in competing in what sounds like a business area with promising growth prospects? Or is their appeal simply that they have thrown their hat in the ring in a promising arena that has generated a lot of hype, even though they don't necessarily have anything better to offer in that area than what other companies could offer?
On the other hand, I just had a heat pump installed in my home in the Portland, OR area and my natural gas useage will probably go down about 90% from what it was in prior years.
I must admit, though, part of their current success is that their production happens to serve the west coast market that commands higher spot prices.
Haven't read the quarterly yet, but I can't imagine the good results aren't heavily influenced by beneficial hedges, which aren't going to be something natgas producers are going to be able to rely on down the road if spot prices remain in the dumpster.
This is a dilemma stock. A decent value, but not a screaming value. To buy or not to buy, that is the question? For me it is just not quite cheap enough. If for some reason it went down further, I would most likely buy some.