# CALFRAC CFW



## FairTrade (Apr 29, 2021)

I might be interested in a gamble...
It seems to have just barely made it through the storm.

-executive chairman recently bought 175k shares
-strength in natural gas price will increase business
-hiring like crazy

Years ago I don't think I couldn't go a day without hearing the name pop up somewhere. 
Anyone have any insight?


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## Spudd (Oct 11, 2011)

Man, I just looked at their 1 year chart. What happened last November?? They lost like 75% in a short time. From $16 to $4. Nuts.

I took a closer look and it wouldn't be for me. They're losing money consistently and future estimates don't show them starting to make money. Morningstar thinks they are 50% undervalued, but they also give it uncertainty rating of extreme. Too risky for my blood.


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## FairTrade (Apr 29, 2021)

Up 11% in a week. Up 3% today even though the whole sector is RED! Looking forward to earnings call on November 2 and guidance to a strengthening order book. Way more fun than the casino!


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## doctrine (Sep 30, 2011)

For sure CFW is nice for a gamble. I am skeptical on most service stocks. CFW's debt is very high, and it's not like there is significant scale returning here. It could take a long, long time to pay off that debt. On the other hand, a service company like TCW is debt free but trades at a big premium (3x CFW) and unlikely to be able to offer much in terms of shareholder return. My only play in the space is HWO, which is both debt free and has a really good valuation, but you might have to wait 1-2 years for full revenue to return and shareholder returns to really kick in sustainably, but that is a far shorter path than other companies. So, for CFW, I would be looking at taking profits if it got much higher. Especially if Q3 is another big fat loss. They still might have too much capacity.


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