Seeking Alpha

Gasfrac (GSFVF.PK) +7.9% and adding to a jump of 14.3% on Friday. There doesn't seem to be any...

Gasfrac (GSFVF.PK) +7.9% and adding to a jump of 14.3% on Friday. There doesn't seem to be any discernible trigger for the movement unless investors feel the stock had touched a bottom after falling sharply prior to Friday.
Comments (16)
  • Sell-side energy conference last week in San Francisco is likely culprit with decent sized buyer.
    2 Jul 2012, 10:52 AM Reply Like
  • Whose conference? Did GFS present
    2 Jul 2012, 11:54 AM Reply Like
  • Presumably it was Hunter Securities. The presentation is on the Gasfrac web site
    2 Jul 2012, 12:08 PM Reply Like
  • Yes. Global Hunter conference.
    2 Jul 2012, 12:56 PM Reply Like
  • That was a month ago.
    2 Jul 2012, 05:24 PM Reply Like
  • Sorry, I should have said "a week ago".
    5 Jul 2012, 02:31 PM Reply Like
  • Hello!
    I am a novice. This seems a promising technology yet the stock has been diving last several months. Can someone knowledgeable here guide me please as to its future?
    Also, if it is set to rise henceforth, what about buying long dated Calls? Maybe Dec 12 or Mar 13? Would that be a viable alternative strategy?
    Thank you for your guidance!
    2 Jul 2012, 01:03 PM Reply Like
  • I am already in, however, I think GSFVF is a great buy at this price. Do your own due diligence. My opinion is that waterless liquid petroleum gas gel will win over water-based hydraulic fracturing that GSFVF competiors use.
    2 Jul 2012, 01:50 PM Reply Like
  • hi yerl786

     

    why calls? if you like it, buy the stock.

     

    Siroco
    2 Jul 2012, 10:06 PM Reply Like
  • Hello, Sirico!
    Calls to leverage available funds and improve ROI. However, I have since found out GFS does not have Options and I do not know if they have warrants..... so the stock remains the only option.
    3 Jul 2012, 09:00 AM Reply Like
  • Thanks much for the update. I am staying in because I believe in their technology and their ability to manage it.

     

    Check it out on their web site
    4 Jul 2012, 06:12 PM Reply Like
  • Is anyone concerned that they have spent a lot of capital to deploy field equipment and the utilization is BELOW their expectations and thus ROE and cash flow will bemuch less than expected when the stock was $14. Some may have sold stock becaise they are worried about company running out of capital and cash. $2-3 is a not a very positive vote of confidence. The upcoming quarterly conference call will no doubt confirm the status of several of these issues. This exciting disruptive and environmentally friendly technology BUT is the business model and capital adequate?
    6 Jul 2012, 10:10 AM Reply Like
  • The reason for the rise in GSF is that with the end of the quarter on June 30 various institutional selling programs came to an end. Institutions during the previous quarter reduced their holdings of GASFRAC from 25 % of total stock to 20%. The have to report holdings as of June 30. Now that that date has passed the pressure to sell is abated for the moment. Why were they selling? As far as I can see they were concerned about falling NG prices and worried that Gasfrac's business would suffer since propane costs more than water. IMHO they were wrong: 1. Propane can be covered reducing cost. 2. GASFRACs's patented process does a better job and produces significantly more NG flow from the well in the long run. One of the reasons is that in water fracking 80% of the water stays in the formation and BLOCKS NG flow from parts of the fracture zone.
    So low NG prices mean the wells that are sunk need to be as cost effective as possible which is what GSFVF.PK supplies.
    6 Jul 2012, 05:06 PM Reply Like
  • Siroco,
    How can I find this info on institutional buying and selling? I use MSN and they say reporting is delayed by 1 month I think. I think this is an interesting theory and would keep it in mind for end-of -year if I was in the stock. I have been following it for a month since learning about it from a newsletter. I was leery at first thinking it was some kind of scam by newsletter to make money on small movements of a pink sheet penny stock but then I saw how many institutions hold it.
    8 Jul 2012, 06:13 PM Reply Like
  • Yeti,
    Hi there. you said you are a novice but want to trade puts and calls. I read elsewhere on this web site an investor who stated he had made good money shorting this stock the past year. I assume he is trading on the Toronto exchange or has a broker who has access. I am a novice still after 25 years being in and out of the market so I stick to just buy and sell. Lets see what happens Monday 7/9 when more people get back in the market after the holiday. Researching this company they seem to do better in their third qtr. The new management has been in place only a short time, have patience and see what they can do. They seem to be moving operations out of Canada and more into lower 48 where the management has connections and experience besides you can operate year round more so in Texas and this process works just as well on oil besides gas properties and some of the older wells might benefit from this process, kind of like getting a new artery in a heart bypass.
    8 Jul 2012, 06:31 PM Reply Like
  • Hello Charles!
    Yes I am a novice, and yes I want to trade Puts/Calls - mainly to optimise use of limited capital , limit risks and improve ROI! But am not sure, trying to learn and takng advice/suggestions from others such as K2O2 and you....
    Thanks for the inputs on GFS. appreciated!
    The best!
    9 Jul 2012, 11:28 AM Reply Like
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