Robert Wagner
Research analyst, CFA, portfolio strategy, gold

I Wouldn't Bet On Frac Sand Going Parabolic

I recently read an article on Seeking Alpha about "frac sand" having the potential to go "parabolic."

The data above is bullish frac sand pricing. Producers have a good outlook as completions continue to use more proppant per lateral foot. This is why I believe frac sand pricing could go parabolic. It benefits companies like U.S. Silica Holdings . Over the past 2 years, SLCA has grown significantly. In the short term, my expectations were for a better number. The combination of increased sand supply and decreased demand has proven difficult for Silica. This is a buying opportunity.

While the author did a very good job defending his thesis for US Silica (NYSE:SLCA), he overlooked some very...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
PRO Top long ideas returned 21.7% in 2016**
"As a PRO member, we get uniquely valuable perspective that go beyond our quantiative analysis... We rely on PRO to get beyond the numbers quickly and add much needed perspective. It keeps me ahead of the next big thing. - Mark Choate, Malaga Cove Capital"
Mark Choate, Malaga Cove Capital
"Contributors (writers and commentators), often have a long history in the secuirities they opine on and some are clearly well positioned industry participants with detailed industry views that can help provide color on where the skeletons are buried in a particular secuirity and/or industry."
Jim Roumell, Roumell Asset Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details