Take this with a big grain of salt, as there is most definitely a tradeoff occurring here, but BAS just reported this morning that their rig count numbers were…unchanged. There was a drop in rig utilization but all other service numbers were higher than in November.
Now, BAS is about to get whacked hard on margins, as they had to offer steep discounts to customers to keep the lights on. Of course, trading at $6.00, it’s also hard to argue that apple’s not baked in the pie.
BAS is cutting deep and hard here. Their goal is to get expenses below $100 million, which basically gives them a few years of clean life. As long as they can break even (or even just restrict the pain to small losses), they’ll be staying in business.
I really do like this company quite a lot. I bought back much of my position in December, after going 100% cash and mentally picking myself up. So we’re having a little intermission? It’ll be alright.
BAS’ competition is dead. I don’t believe they’re in the same league and we’re about to watch the tide go out for many of them. What’s left will be a stronger industry and for the moment, I’m betting BAS will be a part of that.
BAS also announced they were buying back some stock down here. I’d say terrific but I think that’s mostly symbolic. BAS will need to conserve much cash to survive this.
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They are buying back stock—really?
Yes, but again, what is a “buyback”?
If a $300 million company (or is it a $1.5 billion company? I suppose that matters what month it is, har har…) grabs a couple million in company stock, is that anything more than a loose show of support?
Their operational budget is 100X’s that. My guess is this buyback is just a talking point for investors; “Oh, did you see BAS has confidence in their own share price? Tally hoe, etcetera”
The buyback makes sense to me here as an alternative to paying down debt or hoarding the cash.
They have a lot of credit available, if needed, and the market value of the debt is well below par.
The buyback is a sign that Q4 operating cash flow will come in strong. If not, then I’ll be worried.
They might go broke buying back stock.This is a monster pullback.They are at war with OPEC.Their only weapon is time through money.Ceo should be fired now.
Guys, they spent under $10 million on stock buybacks. Hardly the stuff of worry. This is just bumper sticker type acts to try and buy calm in a major source of equity for them.
Yes I might have been oh just a tad over
the top
The CEO deserves a raise considering Basics 2014 financial results relative to their peers. BAS grew revenue and increased margins in a competitive environment where many other companies saw the opposite.
I didn’t say I was wrong, just that maybe
he should get severance and 2 weeks
notice