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BC
Linda,
What's going on with SND? I've seen two pretty big drops.
Linda McDonough
Hello,
You’ll see some comments regarding Smart Sand in my weekly update. The stock is tied to the price of oil and unfortunately is being dragged down as speculators unwind long oil positions. My bullish call on SND is that the increase in fracking, where customers are ordering more and more of SND”s product, is partly responsible for the drop in oil prices. Oil produced via fracking has increased dramatically as producers can break even at a much lower oil price due to its less costly method.
I note today some research that explains how a loophole in the OPEC production cuts led to a temporary surge in production which has caused the recent increases in oil inventory (there is a significant lag between production being initiated and the oil being counted in inventory) and its drop in price. This looks like a temporary drop in the price of oil.
I also saw an article talking about a competitor trying to bring sand production online to meet the increased demand for fracking sand. I think this is a signal that demand is outrunning supply for SND’s product.
Best,
Linda
BC
Thanks for the info Linda.
Linda McDonough
Anytime- please continue posting any questions at all that you have.
Best,
Linda
Santo,
I feel your pain. The stock is getting killed as investors fear new supply will hurt SND’s prospects. Credit Suisse downgraded the stock due to new permits filed by competitors to produce more sand. I think the thought process and the stock behavior is pretty irrational. Demand for fracking sand is outpacing supply. This is why companies are expanding capacity. These are mines that take some time to set up- new supply does not come on overnight. I am waiting to see SND”s numbers. The company will announce in early August. The stock is trading for 1.6x its book value, a crazy low valuation.
Best,
Linda
Earlier this year, your colleague, Robert Rapier, had a one-liner in one of the issues of Personal Finance that he was long Smart Sand. That helped bolster my confidence in the stock knowing that two of the PF advisors shared that view. Do you happen to know if he is still maintaining that same perspective on the company given the recent declines? I know you are watching this one very closely so I am still sticking with it, but I was just curious if Mr. Rapier was still holding on also.
Thanks,
-Aaron
Linda McDonough
Aaron,
I believe that he is still long. In fact, Robert and I have been corresponding on Smart Sand and sharing any research that we find. Both of us are incredibly frustrated in the stock’s action. It reminds me of Solar Edge (NSDQ: SEDG), a painful long that also sold off on unjustified fears of industry economics. That stock is up 80% from its low last February. This action gives me more confidence that SND will rebound.
Best,
Linda
Melody Pfingsten
Linda, It is funny you mentioned sedg. I bought that stock 1000 shares for my retirement and boy oh boy was i not please when you bailed. I did not bail as i do not like to take those types of losses. I am now within 1500 of being even on sedg and believe in the stock because China is going solar big time so was in fact going to ask you if you thought of buying it again?
I too am very frustrated with my 1500 shares i am down 62% in snd but believe in you and know i might have to hold for a couple of years but it will come back.
I can say I started with you and overall have made a good deal of money following your stock picks. The thing i like the best about your picks is i know i am not going to get bitten in the butt by some scandal within the company. I know not every stock is going to work but one can hold a stock if they know it is not going to blow up because of fraud or the likes!
Linda McDonough
Melody,
Thank you for the support. Indeed you have been with me since the very start of Profit Catalyst and always have thoughtful and engaging questions and comments. I really do believe that SND will raise its head and deliver a healthy profit.
Best,
Linda
SND- still look at buy.. every stock we trade has Risk this is why we dont have to put all eggs in one basket and only invest 25% percent of your capital at this time…
SND has Risk… but it has more rewarding position against risk we are taking… it will pay good return if we can go along with Linda and she is watching close to this stocks
Stock Talk
BC
Linda,
What's going on with SND? I've seen two pretty big drops.
Linda McDonough
Hello,
You’ll see some comments regarding Smart Sand in my weekly update. The stock is tied to the price of oil and unfortunately is being dragged down as speculators unwind long oil positions. My bullish call on SND is that the increase in fracking, where customers are ordering more and more of SND”s product, is partly responsible for the drop in oil prices. Oil produced via fracking has increased dramatically as producers can break even at a much lower oil price due to its less costly method.
I note today some research that explains how a loophole in the OPEC production cuts led to a temporary surge in production which has caused the recent increases in oil inventory (there is a significant lag between production being initiated and the oil being counted in inventory) and its drop in price. This looks like a temporary drop in the price of oil.
I also saw an article talking about a competitor trying to bring sand production online to meet the increased demand for fracking sand. I think this is a signal that demand is outrunning supply for SND’s product.
Best,
Linda
BC
Thanks for the info Linda.
Linda McDonough
Anytime- please continue posting any questions at all that you have.
Best,
Linda
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Santo
Bleeding deep red on SND. Tough one this one. Should we cut our losses and bail. Seems hopeless and getting worse.
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Linda McDonough
Santo,
I feel your pain. The stock is getting killed as investors fear new supply will hurt SND’s prospects. Credit Suisse downgraded the stock due to new permits filed by competitors to produce more sand. I think the thought process and the stock behavior is pretty irrational. Demand for fracking sand is outpacing supply. This is why companies are expanding capacity. These are mines that take some time to set up- new supply does not come on overnight. I am waiting to see SND”s numbers. The company will announce in early August. The stock is trading for 1.6x its book value, a crazy low valuation.
Best,
Linda
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Melody Pfingsten
I am curious Linda have you considered buying sedg back again? I truly believe the Chinese have made a huge shift from coal to solar.
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Aaron Cavender
Linda,
Linda,
Earlier this year, your colleague, Robert Rapier, had a one-liner in one of the issues of Personal Finance that he was long Smart Sand. That helped bolster my confidence in the stock knowing that two of the PF advisors shared that view. Do you happen to know if he is still maintaining that same perspective on the company given the recent declines? I know you are watching this one very closely so I am still sticking with it, but I was just curious if Mr. Rapier was still holding on also.
Thanks,
-Aaron
Linda McDonough
Aaron,
I believe that he is still long. In fact, Robert and I have been corresponding on Smart Sand and sharing any research that we find. Both of us are incredibly frustrated in the stock’s action. It reminds me of Solar Edge (NSDQ: SEDG), a painful long that also sold off on unjustified fears of industry economics. That stock is up 80% from its low last February. This action gives me more confidence that SND will rebound.
Best,
Linda
Melody Pfingsten
Linda, It is funny you mentioned sedg. I bought that stock 1000 shares for my retirement and boy oh boy was i not please when you bailed. I did not bail as i do not like to take those types of losses. I am now within 1500 of being even on sedg and believe in the stock because China is going solar big time so was in fact going to ask you if you thought of buying it again?
I too am very frustrated with my 1500 shares i am down 62% in snd but believe in you and know i might have to hold for a couple of years but it will come back.
I can say I started with you and overall have made a good deal of money following your stock picks. The thing i like the best about your picks is i know i am not going to get bitten in the butt by some scandal within the company. I know not every stock is going to work but one can hold a stock if they know it is not going to blow up because of fraud or the likes!
Linda McDonough
Melody,
Thank you for the support. Indeed you have been with me since the very start of Profit Catalyst and always have thoughtful and engaging questions and comments. I really do believe that SND will raise its head and deliver a healthy profit.
Best,
Linda
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Linda McDonough
Melody,
I have but need to do some more research before I’m comfortable adding it at this level.
Best,
Linda
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Sanjay Gangani
SND looks good buy as Linda mantioned to this.. i will look forward to it
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Sanjay Gangani
SND- still look at buy.. every stock we trade has Risk this is why we dont have to put all eggs in one basket and only invest 25% percent of your capital at this time…
SND has Risk… but it has more rewarding position against risk we are taking… it will pay good return if we can go along with Linda and she is watching close to this stocks
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