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Flotek Industries, Inc. (FTK)

NYSE - NYSE Delayed Price. Currency in USD
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1.08000.0000 (0.00%)
At close: 4:00PM EDT
1.1500 +0.07 (+6.48%)
After hours: 07:54PM EDT
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  • K
    Khosrow
    Overpaid for JP3, hired wrong people to develop this business, rushed into sanitizers instead of recovering their core chemical business.
    The results are in front of our screens.
    Sad story.
  • K
    Khosrow
    A sad story. Management had everything at their disposal to build a success story two years ago.
  • k
    k
    CFRA/S&P Global has Flotek pegged at neutral (versus negative or positive) regarding growth, financial health and street sentiment.
    If they said financial health was negative, then I'd be concerned. We're still in the Covid era. Thesupply chain nightmare will run another 12 months or so, but then we'll begin to see light at the end of the tunnel.
  • S
    S A T
    They are running out of money......
  • M
    Marko
    It's very tough. But flotek will succeed, whatever that
    means.
    Bullish
  • M
    Marc
    can this be considered a store of value?
  • B
    B747
    Down trend so far.. might hit 1 buck.
  • M
    Mick
    09/08/2021 Sales were Code F — Payment of exercise price or tax liability by delivering or withholding securities incident to the receipt, exercise
    or vesting of a security issued in accordance with Rule 16b-3

    CEO Bought on open market The rest of the C suite sold or disposed for the above mentioned reason.
  • K
    Khosrow
    I would recommend Flotek to merge with a bigger entity if the shareholder interests are still a priority.
    Bullish
  • r
    richard
    JUST BOUGHT FTK AT $1.26....
  • C
    Chris
    Was feeling good a
    When support held today, then three insiders dump shares, what the hell happens now?
    Neutral
  • E
    Eric
    Is Flotek a buy?
    Thoughts please.
  • S
    Stocks And Scotch
    Undervalued
  • B
    Buddy
    It’s been far too quite. Not even a tiny indication from anyone at FTK to boost the stock.
    Bearish
  • S
    S A T
    Out of money by the end of the year
  • M
    Marlin
    The last income statement was definitely another disappointment. Revenues continued their decline. However, the balance sheet showed, imo, the first signs that Management is now beginning to get its act together, imo. I would think Nierenberg has been putting on the pressure.

    For one, and for once in a very long time, the inventory declined significantly from the prior quarter. Granted it may be a sign of more future revenue declines, but in the past while revenues were declining, the inventory just kept increasing as if seemingly nobody gave it much importance.

    Accounts Receivable also saw an improvement in terms of its collection.

    Collectively, A/R and inventory were strong enough to make the quarter cash flow positive albeit the income statement reflected a major loss. In my opinion, Management, with Nierenberg as Non-Executive Chairman, is intent on turning the operations around judging solely from the quarter results and the cc.

    The industry, nonetheless, has not been kind to almost every player and with signs of an economic slowdown, the future does, indeed, look uncertain to say the least.

    That said, I’ve noticed that Chevron has been using what is seemingly a CnF product. Although Chevron has been reported to be a FTK client in the past, Chevron is now showing up more than in the past.

    The above was good enough for me to buy 25% of a position. I’ll evaluate quarterly. From a balance sheet perspective alone, the stock is ultra cheap with current assets being $3.05 per share.

    Obviously, if there is a devil against FTK, it is in the future revenues and the timing and extent of slowdown.

    So for now, I will buy with caution hoping also that Management does make a synergistic acquisition with positive EBITDA.

    Good luck to everyone!
  • M
    Marlin
    Although last quarter and the current quarter will prove challenging for the company, the fundamental valuation of the company is ridiculous, imo, particularly if you can hold the stock for the long term. Hence, I bought a lot today in the mid $1.80’s. The downside risk is minimal particularly if management is protecting the cash account. Admittedly, the upcoming report can be very disappointing and could affect the stock a little more to the downside. Furthermore, because operators may exhaust their budgets earlier, the current quarter may be a reflection of same. So those are the risks to the downside.
    There are risks to missing out on an upside, however. After re-listening to the last cc, I suggest that the risks to the upside are the following:
    1. The pilot projects they have been working on may be taking fruits now (see their presentation from August).
    2. It is my opinion, that the above referenced pilot projects affected the margins of the last quarter. Recall that the company dropped prices for a select few of its customers and likely it is for the pilot projects, imo.
    3. The above projects are EOR projects. This could be important going forward as they will likely produce recurring revenue if the pilots are successful in meeting the criteria of the operators.
    4. In continuing with the theme of the EOR pilots, they present a better option for operators at a time when they have put the brakes on drilling and completions. It is much more economical to increase production particularly during periods of less fracking.
    5. I believe the company will have to improve the measures to reduce expenses in the environment just described. Nierenberg was adamant about protecting the cash. With him more involved, I believe he will be on top of management to do so. Mind you, he has bought a lot of stock at much higher prices. He has the benefit of having more information than we do.
    6. An acquisition that will add to the bottom line.
    7. An acquisition of the company itself. At the current price the service providers, for example, are good candidates particularly if they have need to improve their offerings in order to better compete with HAL, SLB, etc.
    8. Although the selling may continue until the earnings report comes out, just a confirmation that the cash is relatively stable will, imo, support a higher valuation. Mind you, the current assets alone are $3.06 per share while the total liabilities are $0.72 per share.

    GLTA!
  • K
    Khosrow
    No buyers as the stock continues to slide on very little volume.
  • M
    Marlin
    Needless to say, the oil industry, particularly drilling and completions, is going through a scary nightmare due to well know reasons. As such, FTK is not a stock you would currently buy for a short term trade.

    That said, the stock should be bought for a long term investment, imo. Today I added 33% to my position at $0.67 with that in mind. I understand full well that the first will show a decline in revenues. The second quarter may show a further decline in revenues, imo. The third and fourth quarters are full of uncertainty. So, given how poor the revenues will be why would I buy now?

    Because:
    1. The cash expenses will also decline accordingly.
    2. The Board and the executives have agreed to a significant reduction.
    3. Since the first quarter the company has become more competitive in terms of pricing. Pricing was the principal reason why revenues declined in the past several quarters apparently. Recall that many quarters ago the company lost the biggest customer due to pricing pressures. The company was / has been selling a very effective product that had a significant premium attached. With the significantly reduced product pricing and a product that continues to demonstrate its efficacy, the company is in much better position to take market share.
    4. We have a new management team that has been swift and focused on cutting expenses.
    5. The risk / reward is obvious. That said, I just may have to wait a little longer for the stock to recover.
    6. The allocation of the cash horde is attractive to an acquirer although, admittedly, there may not be many suitors at this time. That said, the oil industry is a fragmented industry full of small mom and pop businesses that may be a good option to buy during these hard times.
    7. The price has been oversold warts and all. For $0.67 per share, I got a portion of the company for less than the amount of cash in the bank. A freebie!
    8. We are at the bottom of the cycle, imo. Businesses are opening slowly. The economy will rebound as well. The coronavirus curve is declining in the U.S. of A. where FTK is operating.
    9. Recall that Nierenberg bought over one million shares. Brown bought 30,000. Nierenberg is know for pushing for a sale of the companies after improving the operations. If you have a time horizon of a year or more, and you don't need the money, the stock is a no brainer, imo.
  • K
    Khosrow
    The sanitizer business is not going anywhere. But if they successful in JP3 and restore their chemical business, the stock can take off.
    Bullish
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