Basic Energy Services is down 5% on me after they announced a secondary offering good for about a 5% dilution.
This pain is never welcome, but I’m not necessarily concerned. I have a long standing policy of not getting puffy over equity raises so long as they are put to good use. What I want to see is what BAS intends to do with the money.
So long as they aren’t hoarding cash or using it to pay existing expenses, there’s no problem here. I want payrolls to grow, lines of business to expand, revenues to increase (and it better be above current per share growth rates)…I want to make money.
If that means selling a little stock, what’s the issue?
I’m not sure I’m a buyer of this drop, because I own a lot. But I’ll be taking a look at the numbers later.
(Interestingly, HCLP is also getting hooked today, probably because automated correlation programs lack subtlety)
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Cain, I’m getting crushed today by HCLP. What are you referring to in regards to automated correlation programs?
Oh just chuckling that BAS and HCLP are both getting equivalently smacked in the same day, but while BAS is pretty clear, HCLP just seems to be following
There was a news release late May about an increase in their capital budget by 50 mil.
I wonder what other budget increases the board approved? I would imagine that management is asking for raises right now based on the performance of the stock lately
I would be.
Like I said, no reason to panic about a little equity raise.
Cramer mentioned this “here’s what i’m worried about. a fabulous article in the new york times about colorado and potential moratorium against fracking. this would impact a stock that i think is one of the greatest stocks in oil, noble energy. symbol nbl.”
Link to whole thing: http://video.cnbc.com/gallery/?video=3000282890&play=1
Not that I have a problem with this, but Jim Cramer gets paid to be worried about things on television. I don’t.