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...

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