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Smart Sand, Inc. (SND)

NasdaqGS - NasdaqGS Delayed Price. Currency in USD
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1.4100-0.0300 (-2.08%)
As of 12:12PM EDT. Market open.
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  • M
    Mitchell
    Isn't this the kind of company that price should sky rocket since they can't make money. Sold half of position for a huge loss.
  • B
    Bullcrap
    Good #'s on the ER. Bodes well for the future if drilling doesn't lose momentum.
  • A
    Alexandre
    ... and still they couldn't make money! Earnings are better than before, but I expected better. How can they not make money in this environment???
    Neutral
  • J
    James
    SND being crushed this badly for a report that beats - is going to force me to buy even more....
  • d
    dx52656
    The most recent quarterly earnings were certainly a disappointment to me, but there are still reasons to be optimistic about the future and to have faith in the company management.

    1. EPS came in at zero cents, but that was better than the estimates of a 5 cents loss.
    2. The company had positive pre-tax earnings, but paid more income tax in the quarter than they earned. That certainly won't continue.
    3. SND went public in late 2016, which means they have been a publicly traded company for less than six years. They reported positive EPS for the first 16 quarters after going public; their first negative EPS wasn't until the 4th quarter of 2020. Their overall track record is positive.
    4. The company has only $14.8m in debt....the debt to capitalization ratio is less than 6%.
    5. The company trades at a 60% discount to book value, which means (theoretically) that if the company gave up the business and liquidated, investors would more than double their money at the current price.
    6. The company just completed a record quarter for sales and forecasts that 2022 will be a record year for sales.

    In summary, and in my opinion, this looks to me like a company which has successfully navigated the oil crash which accompanied the pandemic (remember when the cost of a barrel of oil went negative?), managed to keep debt under control while purchasing distressed assets from other companies, has an overall history of being profitable, trades at a substantial discount to it's assets, and is seeing the fundamentals of it's business boom. I'm willing to give them a quarter or two longer to show us the money. Of course, I can say this because I was fortunate enough to buy many of my shares when the price was below $1 in 2020. I can understand why those who bought at or near the IPO would be more frustrated than I am. However, I would argue that the risk/reward analysis would seem to imply limited downside and possibly impressive upside.
    Bullish
  • v
    valueinvestor115
    This company has equity of $236 million and is selling for less than $115 million at its current price of $2.54 per share. They reported positive EBITDA which shows they're finally starting to emerge from the negative business cycle caused by Covid. Revenues and tons sold this last quarter were higher than any other previous quarter in the history of the company. Not to mention the shortage of frac sand in the industry at the moment.

    This definitely looks like a great value company if you invest based on fundamentals. Excited for the earnings call today.
  • B
    Bullcrap
    Nice 10% jump this AM with no news, very good volume, ahead of earnings. This bodes well for Aug.
  • v
    valueinvestor115
    I've been reading some comments about how SND is a terrible company and should be avoided at all costs. However, there's an important distinction investors need to understand about whether a company is truly a bad company, or whether investors overpaid when they bought shares in that company.

    Personally speaking, I am still up on this company despite its downturn in recent months. In fact, some of my lots are up over 150%. Why? Because I know when the company is a good buy and I know when the company is too expensive based on fundamentals.

    How a company's stock has performed in a certain time frame has nothing to do with whether it is a good company or not. In fact, if I like a company and their shares decline significantly, that should excite investors who are basing their investment decisions on fundamental valuation models because they have the opportunity to increase their position at an attractive price, thus increasing their overall returns.

    Anytime investors overpay for a company, they're going to be dissatisfied with their returns. The takeaway shouldn't be to put blame on the company. The takeaway should be for investors to review the decision, find out why the purchase was poor, and apply what they learned going forward.

    SND's management believes in a strong balance sheet and understands the importance of free cash flow. Those are arguably the two most important things to understand when running a business.

    Best of luck to all of you
  • J
    Jim Jones
    oh boy ........Q2 news today
  • M
    Mitchell
    Crazy idea how about they show a profit. Lone analyst says a 5 cents loss. Long into earnings with a few take or pay contracts to be announced hopefully. GLTA
  • B
    Boris
    I'm in for 1000 shares.
  • J
    Jim Jones
    Next Q will be better.......... stay the course......
    Bullish
  • M
    Mitchell
    (Bloomberg) — Bumping along the desolate highways of the Permian Basin, the world’s busiest oil field, there are long stretches where all you see are drilling rigs, sage brush and miles upon miles of sand. That’s why it’s so strange that Texas crude producers are facing a sand shortage of more than 1 million tons and prices that have jumped 150%.

    Frac sand, which gets blasted through shale rocks to unlock oil and natural gas, is averaging $55 a ton, up from $22 at the end of 2021, data from energy-research firm Lium show. Demand is climbing as oil explorers turn the taps back on after Covid-driven cutbacks. But like in so many pockets of the economy, the recovery is sparking a mismatch. Sand suppliers have seen disruptions, labor shortages and trucking bottlenecks. The chief executive officer of US Silica Holdings Inc., the largest publicly traded frac-sand miner, has dubbed the tight market “sandemonium” and said his company is sold out.

    That’s where Steve Brock and his upstart sand-mining operation, Nomad Proppant LLC, come in. Since the early days of the shale revolution more than a decade ago, fracing operators have relied on mined sand that’s delivered to their sites by truck — across distances as long as 100 miles. Brock, Nomad’s chief commercial officer, wants to turn that model on its head.

    His idea: Why not just use the sand that’s right under your feet?

    Nomad has developed machinery that can go directly to the frac wells (give or take 10 to 20 miles), vastly reducing the burden of freight costs and the time-consuming process of trucking.

    “We’re not brain surgeons here — all we’re doing is finding the best spots and washing and delivering the sand,” said Brock, 34. “Frankly, that it took us this long to get here is pretty wild.”

    Brock left his job at Covia, one of the world’s biggest frac-sand miners, in February 2020 to help start Nomad. It launched its first mobile sand mine in West Texas last month, after the huge surge in prices. He calls the timing “very lucky.”

    It’s sand scarcity, even more than price, that’s the big hurdle for oil drillers. Pioneer Natural Resources Co., the Permian’s biggest producer, said it expected oil and natural gas output would take a hit last quarter because of sand issues. Things are so extreme that some oil companies are shipping sand in by train from Wisconsin at almost double the cost.
  • d
    dx52656
    I find some of the comments on this board curious, considering the history of this company. One commenter continues to decry the company management because of their supposed history of losing money. However, going back to 2014, the company has been profitable every year except 2021. Since they became a publicly traded company in late 2016, they had 16 straight profitable quarters, which have been followed by 5 unprofitable quarters (along with pretty much every other energy-related company).

    Over the past five years, revenues and shareholder's equity per share has more than doubled. The company is currently trading at a 45% discount to book value. Despite oil trading below zero at one point, and with some competitors (i.e., Hi-Crush) falling into bankruptcy, this company has managed to survive. Much of their loss (about 40%) in 2021 was due to them settling with US Wells for a reduced repayment of revenue that they had been awarded by winning a lawsuit in court. They have picked up assets from competitors on the cheap (most recently from Hi-Crush), and remained solvent, if unprofitable.

    Now that oil has gone from $40 to over $100/barrel, and with the current conflict in Ukraine and the impacts it is having on the oil supply from Russia, it is hard to imagine that fracking oil in the US isn't ramping up quite significantly. I read an article in the Wall Street Journal last week that described the fracking sand supply as being "quite tight," which I interpret to mean that sand prices will be higher.

    Based on history, I am confident that the management of SND knows how to navigate their business better than the naysayers on this board think they can. The company could be liquidated for almost double the current price....it sure seems to me as if the risk/reward balance tilts in favor of those who expect the stock to rise this year.
    Bullish
  • W
    WB
    Upside potential with this stock is huge, as a small cap it has the balance sheet to survive the downturn in Oil, other sand frac have gone in to bk due to poor balance sheets, SND focused on lowering debt and will survive and pick up new customers as a result! Long all the way
    Bullish
  • J
    John
    Smart sand is one of my customers, last time I talked to them they said business is good we are humming a long, I supply parts for several sand companies and know several of them have gone out of business, so less competition for SND. I decided to pick up the 3k shares the other day and glad I did.
  • t
    troutman2u
    Been watching this one for the last few weeks, hoping for a pullback. They've beat nicely on earnings the last few quarters, and look to be undervalued. Today I'm taking an initial position @ $3.84, and will average into a larger position, if it pulls back more.
  • N
    Navios
    $7 in equity and huge growth in income over the last 5 years. The acquisition added almost 40% of the market cap in new equity and it should produce a lot of income when frac sand increases in price! Easy $7-10 company, I don’t care if it takes a couple of years to get there
    Bullish
  • b
    bruce
    Management should be explaining what is going on!
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