U.S. markets open in 6 hours 28 minutes

Newpark Resources, Inc. (NR)

NYSE - NYSE Delayed Price. Currency in USD
Add to watchlist
3.3600+0.2200 (+7.01%)
At close: 4:00PM EDT
Sign in to post a message.
  • M
    Marlin
    The turnaround is obviously taking shape.

    1. Inventories declined sequentially while revenue improved significantly on a sequential basis. You have to love a management team that prioritizes same.

    2. The repurchase of the Convertible Notes should give Mr. Market more certainty that the Debt is not a problem even though the expiration is short term. The company is able to borrow and operate just fine while the road to profitability is taking shape. When you consider a book value of $5.30 and the stock trading at $3.25 in after hours, you have to agree that if you are patient, you make a lot of money in this stock.

    3. SG&A expenses remained relatively flat while revenue increased +/-$11M.

    4. Compared to a year ago, interest expense is almost one million dollars less.

    5. The current quarter will see further improvements, imo, as we see the economy roaring back.
  • M
    Marlin
    May 5, 2021 Newpark Resources (NYSE:NR) Rating Increased to Overweight at Capital One Financial
  • M
    Marlin
    Today, if I remember correctly, is the last day of the "poison pill" implemented by the company a little more than a year ago. In my opinion, there had to be a prospective acquirer of the company back then and Management made the effort to protect the shareholders from a lowball offer. Management was clear that they were not against a sale but they were, indeed, against an unreasonable offer.

    I believe Innospec is a perfect acquirer of Newpark. There's a lot of synergies, imo. I should note that Innospect has pulled out of acquiring Elementis which is a much bigger company than Newpark. Conjecture: Innospec could be eyeing Newpark. Why not? NR trades for forty cents on the dollar of book value.

    The industry is turning around already. The stock will turn around as well.
  • M
    Marlin
    Note that prior to the earnings report, the one-year price target reported in Yahoo! was $3.25. Today, it is $4.50.
  • T
    Tim
    nr earnings - pretty good considering $3 million tax and freeze shutting down business in southwest last February. Would like to get guidance of no less than break even for 2nd quarter
  • j
    joes
    Unexpected chance to DCA from the low 3s. Awesome - This will run hard around upcoming earnings and as Oil continues to stay above 60. Expecting big things from these guys as they continue to pay off debt.
  • M
    Marlin
    I think sellers today got it wrong.

    In my experience, when a company is able to decrease inventories while increasing revenue the company's operations have turned around. This is the case of NR. SLB has projected a turnaround in the oil industry as well. That said, I believe the turnaround may be more pronounced in the second half of 2021.

    On another note, the current market valuation of this company is ridiculous, imo.

    That said, I loaded the boat towards the end of the trading day.
  • M
    Marlin
    Jamie Dimon, CEO of JP Morgan has reiterated "that the economy is poised to emerge from the pandemic on fire, with growth that could stretch into 2023."- The WSJ.

    Under that scenario, I can see Newpark benefiting for the long term.
  • J
    JH
    This is fine action. Stops that are easily taken out ahead of earnings happens for a reason. That $3 level was key as many stops are placed there. The company has been paying down debt and I expect to hear another good sized chunk of the bonds were redeemed in the quarter. The bonds are trading at 99 now (I think) which is awesome.
  • d
    derrick
    Manipulation is the best. Funds trading hands until this takes off in the next month. Hold!
    Bullish
  • f
    fungolink
    clean energy and use of new tech in this field help fracking in taxas
    Bullish
  • K
    Khalid
    Is the NR going up tomorrow?
  • W
    WeedFarmer
    $CDEV conversation
    Absolutely ZERO reason to sell either $CDEV $SM MTDR $NR $TTI anytime soon.
  • J
    Jeff
    Okay, the stock is up .20. My options should be ripping & it’s down. Like 43% down. Tf?
  • T
    Tim
    NR 1st Quarter guidance:

    $142mm revenue
    $3 mm loss

    probably conservative. my guess is $150mm and break even.

    Their revolving credit line is in single digits and could be entirely paid off this quarter, leaving convertible debt of $67 million due at end of year. My prediction here is strong cash flow generation this year makes paying off convertible a snap. This stock should do extremely well this year.
  • K
    Khalid
    What the Target for NR ? 
  • J
    Jeff
    Should be out of debt this year. Why is this not running?
    Bullish
  • p
    psight
    Read the ER press release.

    To me really important thig is the debt reduction and how little debt this company has!!

    Here is the info from the the ER from the CEO:
    "... to maintain strong Free Cash Flow generation, which led to a $15 million reduction in total debt. The fourth quarter contribution brings our full year 2020 cash from operations to $56 million, yielding Free Cash Flow of $52 million and leading to a $73 million reduction in our total outstanding debt. We ended 2020 with a total debt balance of $87 million, reflecting our lowest debt balance in more than 20 years,"

    The remaining debt is only $87 million. Last year they reduced it $73 million. THEY WILL GET RID OF ALL OUTSTANDING DEBT BY THE END OF 2021, I think!!!
  • C
    CS
    $CDXC conversation
    Brenner on Niagen stable shelf life--(recent Rhonda Patrick/ Sinclair podcast)

    "Charles Brenner, PhDVerified account @CharlesMBrenner · Nov 7

    Replying to @Mattkelly20 @davidasinclair

    That’s quite the shocking statement. Not true of #Niagen, which is a stable crystal form of #NR chloride. Niagen in its excipient from @truniagen is stable at room temperature for years. @chromadex has data on this"

    https://twitter.com/CharlesMBrenner/status/1192469911341191169
    “@Mattkelly20 @davidasinclair That’s quite the shocking statement. Not true of #Niagen, which is a stable crystal form of #NR chloride. Niagen in its excipient from @truniagen is stable at room temperature for years. @chromadex has data on this”
    “@Mattkelly20 @davidasinclair That’s quite the shocking statement. Not true of #Niagen, which is a stable crystal form of #NR chloride. Niagen in its excipient from @truniagen is stable at room temperature for years. @chromadex has data on this”
    twitter.com
  • J
    JH
    The bonds last traded at 91.25, the highest since March 11th. I think it's mostly the company buying these as they've done through the year. Through Q3, the company bought $33 million worth of face value for 88% of par. They mature next December, so picking them up now is essentially a 13% return on capital as that's the current yield to maturity (4% coupon plus the 9% capital appreciation). Good return for any investor, even the company itself.