I also waited on this. Knew about it a year ago or so. But I aways figured Obama would outlaw fracking. Guess there was just too much money paying off the right people to have it happen. Stock is a triple or more from here in the next 2 to 3 years.
What i'd like to know is just WHO they beat out on this last contract. And was the bid so low that AUDC isn't making much on it.
I'd be bargin hunting oil related issues today. Of course unless you think gas at the pump will soon be 3 bucks.
Kinda like watching an hour glass being turn upside down from day to day. I guess sand, like money, has a way of sifting through you fingers.
Oil is only 'crushed' when it is reflected at your local gas pump. Any of you REALLY think we'll ever see sub 3 dollar gas again? LOL
These 'knee-jerk' moves down always cause weak hands to sell. Big boys skim off the dough and in a few days the stock is right back to where it was. Story here hasn't changed and in fact will only improve. The oil is there. All that's needed is the equipment and materials to extract it and ship it.
Railroads service those shippers that command big money. Since we all know there is a shortage of cars now, there is no reason yet to believe the railroad can handle the amount of business at hand with sand. By their nature these cars are running heavy. Which really wears on the running gear. Trying to repair a car thats been bad ordered takes at least a couple days in the yard. Brakes not so much as they can be changed out while awaiting a train. But bent rigging and such can take it out of service a couple weeks sometimes. If you know you're going to need sand cars, the best way to assure it is to own them and service them at your place of business. One small length of track, a couple guys with cutting tourches and a 20 ton lift can work wonders.
Well, lots, but here are a few i'm on today. PIR--I believe you'll see a run up to Xmas. HCLP--had a small pull back and looks like a good entry point. CVRR--Plant is up and running again after a sut down. RAX-- seems to have gotten some mo-mo. STRA-- has a tiny pull back today and I believe is a double within two years. OZM-- had a strange buy today and it could be signaling the next run up. MSB--usually pays a nice div at end of year. Expect to see some run up there, and if not, a nice div to make it worth holding anyway.
Mike, I like your buy. I doubt you have much to worry about. Only thing that could kill you is if one of the rigs went south. Boring investment, but the hare won the race, right?
Profit taking hasn't much happened in the last year as it kept rising. And there is little reason to believe the story hs changed as demand for the product just keeps growing along with the drilling.
Rail cars to haul the sand are on back order. The fleet of cars should increase by about 30% over the next year. No end in sight for the Bakken and other oil fields. Consoldation in the space is a sure thing. Not sure who'll be buying who. But it is sure going to rock and roll.
As far as EMES and HCLP, imo they are both takeover candidates. If not one buying or merging with the other. Keep in mind these two companies are in close proximity to one another.
Mark, during the Ca. gold rush we were taught in school that the REAL winners weren't those finding the gold, but those that supplied the picks and shovels. Orders for the rail cars which deliver the sand are way backed up. There are issues with the grain this year as there aren't enough grain cars for transport. No less a problem with the fracking sand cars. I see this as the only hinderance to riches unless Obama comes in and stops the fracking all together.
People are buying into for the big div payout that's coming. Every Sept. it seems they like to give the share holders 5% in shares that they hold. Thing is, it would seem to me that from its price today at 23+ it would make a great short to 20. FYI
I'd wait till Friday to see if you want some of this. Of course you could 'miss the boat' on a small rise in the mean time. But I'm thinking this has a bit further to fall. Sub 10 is more like it.
At 36 today I don't see any real reason not to hold here. I mean IF you can trust that the dollar a quarter div will happen going forward. How many companies come out and tell you that the div will continue at such&such for the next year? 12 to 14% on your money for the next year is crazy good if you're just looking to have a cash cow for a million or more dollars.