Seeking Alpha

Nuverra slammed on reverse split, plans to sell TFI

  • It's an ugly session for Nuverra Environmental (NES -32%) after reporting weak Q3 results and a 1:10 reverse split, but at least losses have held steady through the day.
  • Of $233M in asset writedowns, $98.5M went toward the TFI business bought last year for $245M; NES says it plans to sell the business, an admission that the business never lived up to its billing as a stable source of earnings.
  • Revenue in the fluids management unit was flat as earnings declined; peers Key Energy (KEG) and Basic Energy Services (BAS) appear to be doing a better job managing current conditions.
  • On its Q4 outlook, NES says it doesn't expect a material change in overall business activity and believes the typical seasonal slowdown could be greater than normal.
  • Craig Hallum cuts shares to Sell from Hold after "consistently poor results" and "continued margin compression."
Comments (24)
  • Tastychap
    , contributor
    Comments (73) | Send Message
     
    Definitely not a good Q3 earnings. They do though seem to have a plan to correct things.
    8 Nov 2013, 05:19 PM Reply Like
  • davi10398
    , contributor
    Comments (4) | Send Message
     
    is it really up back to $2.37 after hours right now?!
    8 Nov 2013, 11:41 PM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    All and all the conference call seemed positive for the future.
    8 Nov 2013, 05:44 PM Reply Like
  • jdm12313
    , contributor
    Comments (151) | Send Message
     
    Agreed with the above. The split was not news either. Touch business to be in right now. Good luck with your positions.
    8 Nov 2013, 05:47 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (5756) | Send Message
     
    Not sure I'd call KEG and BAS as peers.
    8 Nov 2013, 09:51 PM Reply Like
  • RayRay77077
    , contributor
    Comments (224) | Send Message
     
    You are right, those other companies provide other services that oil and gas companies need. NES doesn't.
    9 Nov 2013, 02:45 AM Reply Like
  • davi10398
    , contributor
    Comments (4) | Send Message
     
    Long more than ever before. Selling I believe is finished and stabilization and support around $1.60. I like the reverse stock split; I think it will make people perceive it as less risky with a higher stock price. Solvency will not be in question any more with sale of TFI business and production will improve after January. Heckman is no longer at the head of the company so Johnsrud will get the company more focused on its core business.
    8 Nov 2013, 11:22 PM Reply Like
  • jim@jimotto.net
    , contributor
    Comment (1) | Send Message
     
    Someone please tell me any good news on a reverse split. All I see is bad news for the stock price. Etrade is a good example.

     

    JO
    8 Nov 2013, 11:26 PM Reply Like
  • davi10398
    , contributor
    Comments (4) | Send Message
     
    Did any of you see the stock jump to $2.37 after hours? It was some sort of glitch, but it happened on my Merrill Edge account, market watch, and google finance.
    8 Nov 2013, 11:56 PM Reply Like
  • David INC.
    , contributor
    Comments (221) | Send Message
     
    Could have been the Previous closing price.
    9 Nov 2013, 12:53 AM Reply Like
  • whiff
    , contributor
    Comments (636) | Send Message
     
    Corporate behavior of this company borders on criminal.
    9 Nov 2013, 08:20 AM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    The stock split will definitely draw more to this stock....I also believe that this stock seemed to make a bottom at 1.60 and was able to buy some below and at 1.62..Tuesday should tell if this was a true bottom...and if it is ...I will buy more...
    9 Nov 2013, 08:21 AM Reply Like
  • holydawn
    , contributor
    Comments (127) | Send Message
     
    when this happened to citi, did it change perception and cause it to come back?
    9 Nov 2013, 03:48 PM Reply Like
  • whiff
    , contributor
    Comments (636) | Send Message
     
    Has anyone gotten in a car and gone out to see what these people do or how they operate? My suspicion is that it is a bunch of dirty trucks and some 2-way radios...
    10 Nov 2013, 08:44 AM Reply Like
  • Igraduatedcollegealready!
    , contributor
    Comments (25) | Send Message
     
    My guess is johnsrud will take the next quarter and start righting the ship. Q1 January they sell TFI and pay down debt. With the reverse split and 26 million shares out, they will pit together a clear picture of growth and profits and do a secondary to chop the debt down and then you see Johnsrud make his acquisitions.
    10 Nov 2013, 09:47 AM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    that makes sense...and the secondary will at least be more than 1.60 after the split which should show more interest to others...who else out there has any long positions .....or other opinions on this stock...???.
    10 Nov 2013, 01:30 PM Reply Like
  • David INC.
    , contributor
    Comments (221) | Send Message
     
    I was looking more in the direction of HAL picking them up entirely. This is "Mr.Toad's wild ride.".. I feel like any of this is still in the realm of the Frac-bubble, where even the losers will make out big.
    11 Nov 2013, 01:39 AM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    nice thought...a takeover would be a win for HAL....at his point they could not loose and get a lot of bang for their money....and in the future they could write this off when it not as profitable anymore...and I say today ....to all who served our country and to those who never made it back...God Bless...and Semper Fi
    11 Nov 2013, 09:30 AM Reply Like
  • Sparky0051
    , contributor
    Comments (2) | Send Message
     
    Whiff: I see them all the time and their equipment is top-notch. Mostly newer trucks that shine and very confident, well trained drivers. However, you are correct their Method of Operation borders on criminal! I still say when the big E&P companies figure out their scam, they will be in worse trouble than they are now. I bailed out after seeing how they operate in the field.
    11 Nov 2013, 10:29 AM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    MBA...if you out there still watching NES..come back and let us know what your thoughts are now..
    11 Nov 2013, 05:32 PM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    Mötley Fool had an interesting article with their review of conference call...seems to add to not giving up on NES!
    12 Nov 2013, 01:23 PM Reply Like
  • RayRay77077
    , contributor
    Comments (224) | Send Message
     
    That Motley Fool article was a steaming pile of garbage.
    13 Nov 2013, 12:01 PM Reply Like
  • ECapo
    , contributor
    Comments (434) | Send Message
     
    That may be RayRay..they may have other interest as many do that write about anything..what do you think is next in this spiral and the future of NES???...are you shorting NES?
    13 Nov 2013, 09:47 PM Reply Like
  • jdm12313
    , contributor
    Comments (151) | Send Message
     
    Stop it. You mean the honest and caring contributors writing at MF and SA aren't the altruistic folks I thought them to be?
    14 Nov 2013, 11:51 AM Reply Like
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