by Travis Johnson, Stock Gumshoe | May 18, 2011 11:42 am
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I’m been watching this one myself… I was thinking some new laws might help them out. I like the move Gumshoe.
Gasfrac has really got trashed. Anyone know why (outside of market mayhem)? They haven’t really recovered at all sense the sell off. I’m thinking about dipping in for a little taste this week.
I believe that the process is only profitable when energy prices are high. So if you think continued recession is a probability then you probably want to avoid these. Roger Conrad of Canadian Edge explained this years ago.
I’ve been asked this question a couple times. GasFrac is a bit of an odd duck because they’re in transition in several ways: trying to build a customer base for a new technology, managing a dramatic jump in fleet size, and, the surprise problem, dealing with a revamping of their safety procedures after the accident that shut them down for a little while over the winter. Those transitions are against the backdrop of fuel prices, of course, which impact everyone (other fracking companies are down too, just not as much).
The quarter was pretty bad, but my opinion will depend on a couple quarters from now when things are hopefully “normalized” — I’m being patient for now.
Is there a price that you think makes it very cheap? Do you understand the technology at all? I listened to the last conference call and they referenced patents, any idea what they are talking about? If you get time to dive deeper into Gasfrac that would be frackilicious.
🙂