Listen to me. I’ve had all but 4 hours sleep over the past two nights, so I don’t have the mind to debate, offer links, research notes, or what have you. Just know, James Cramer is an idiot. I’ve eaten at his restaurant and it’s recklessly terrible.
The other night he said he wasn’t a believer in the great sand super cycle for fracking companies, SLCA, EMES and HCLP. He further elaborated that if forced to choose between the three, he’d buy EMES. Coincidentally, Goldman Sachs had upgraded the shares that very morning.
At the same time, old line fracking ceramics company, CRR, had just warned and its shares were and still are on death watch. This gave great opportunity for the perverts clad in burlap’d undergarments to sell short some of America’s finest companies, with a little help from the lunatic on the boob tube.
What people failed to understand is that CRR sucks and missed earnings because SLCA, HCLP and EMES are snatching share like a gold chain on a white guy in Harlem.
There is an opportunity ahead. Great American companies of industry are on sale because of miscommunication and fear. I will triple my SLCA position once the selling exhausts.
Instead of listening to me or Cramer, read the Cowen note from the other day.
U.S. Silica target raised to $83 at Cowen; Outperform (69.29 )
Cowen raises their SLCA tgt to $83 from $67. The U.S. Silica story keeps getting better. The 2014 analyst day included a positive update to current year guidance, the announcement of accretive capacity expansions, and the introduction of long-term targets which seek to double EBITDA every 3 years with 2020 possibly reaching $1B. Firm sees the investment case evolving to a more durable long-term thesis; Outperform.
Good night.
Cramer is a lower minion of hell in human form. Sent here by lucifer to sacrifice rubes money to the stock market gods.
I listen to Cramers podcast on my iPhone every night
I don’t know .. those charts are scary, like they’ve had their enthusiasm blowoff … they remind me of gold & silver from 2011
I wouldn’t buy any of these companies even with your money.
What in the hell do you people know anyway?
Charts??
Pfffff
you watch Mad Money? lol
Harlem is nothing. IMO Central Brooklyn is 1000x more dangerous.
Pirate
you are correct.
Fly, I believe your analysis, but I do not want to buy a stock Cramer does not like. He has a lot of followers. There are 8000 other stocks to choose from.
Oh boy.
HCLP got upgraded this morning
I saw that.
HCLP issued guidance on price for frac sand to increase 10% by the end of the year. Five year forecast for sand demand to triple from current levels.
Laura Fulton, chief financial officer of Hi-Crush Partners L.P., says, and I quote:
“There’s really no limit on the demand side.”
Sorry, for frac sand to increase “5-10%”
These are long term holds, in my opinion. These are stocks that should appreciate over the next 5 years, so ignore the short term gyrations.
Great chart here on how companies that frack can produce natural gas much cheaper, and they can do that because of the sand and water mixture. That’s why there is and will be a huge demand for these companies.
http://www.businessinsider.com/natural-gas-price-divergence-2014-9
Cowen also had/has a $55 price target on VHC….just sayin.
i’m just not a fan of the way the smid cap e&p universe has levered up and outspent cashflow to chase production growth into the face of a rising credit spread/declining commodity price environment. SLCA might produce more sand next year but look at what happens to E&P cashflow if crude trades to $80. not sure the market is going to allow them too keep outspending cashflow through borrowing if leverage ratios explode. i don’t mind the trade down here, but not sure you can own these long term.