If you are trading BAS, I want you to memorize this passage, which I put up inside of The PPT for the privileged and well connected.
BAS is down 11% at the time of this writing on bad earnings. Bad earnings should be expected with this company, for the moment and into the forseeable future.
As it stands, I actually was pleased with BAS’ earnings, as they were about what I expected. I will break them down later this weekend, when I have time. I will point out; even though the company lost money, their cash level increased from earlier this year. That has a lot to do with why I am in this name in particular, and not one of their competitors.
If you are following along, I caution you to reflect on what kind of person you are. Are you prone to panic? Do you actually understand what’s going on here?
I am in this name because I believe they will emerge, following a great consolidation in the fracking revolution taking place in the US, victorious and on top. I anticipate that they continue to lose money from fierce competition for the time being. It is the floundering deaths of BAS’ competitors that has put pressure on their bottom line, and will continue to do so for the forseeable future.
Just before July 4, I restructured BAS down, selling shares until it was only 7% of my account. I view this price collapse as a buying opportunity. But I want it lower, closer to $10-11.Comments »