Don-n-ABQ

Carbo Ceramics: Value Plus Volatility

Well, I never thought it would move like this.

Tom, if you have my crow ready I guess I start chewing.

That said, I can't help but think there is some froth here and no doubt a short-squeeze happened with that huge short interest that was built up.

So, I am looking for a nice re-tracement for the month of October.

Any thoughts?

Carbo Ceramics: Value Plus Volatility

1) I am having a hard time buying the idea that CRR will crack $2.00 in earnings for this year (normal earnings barring any adjustments from none product and service sales).

2) The shares short is now 31.82%. That is high. When it gets that high I want to go the other way.

3) This stock does fit nicely in the picks and shovels for NG exploration.

BOTTOM LINE: Short term, next three to six months, dead money to down. $35.00 is fair value here. There will be a wash out sometime between now and the end of the year. The $30.00 dollar area might very well be re-tested. Longer term, 10-year money, build a position.

The number one thing I would love to see: Insiders and company buying more shares. There have been no insider buys this year. The insiders don't think the NG drilling market has bottomed yet. While the company is purchasing some shares, I would love to see that stepped up and doubled.

I am not as bullish in the short term as Mr. Armistead.