Basic Energy Services blew past analyst expectations, recording a smaller than expected loss, announcing above average revenue growth expectations, and that they were so excited by all of this that they will be jacking up investment activity even more than prior announcements.
The stock is off 8% after the open.
I don’t know what shareholders were expecting…but given the run from $16 to $28 followed by this, I have to suspect it was ‘the moon’.
The company is afforded the benefit of the doubt in my opinion. I’ll look at the SEC filing then decide if I want to lock in some gains or let it ride. But I’m predisposed to let it ride.
Mind you, today’s plunge doesn’t even take the stock back to the 50 day moving average. My guess is this will resolve quickly, affording a good buying opportunity.
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The dip appears to be getting bought.