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U.S. Silica Holdings: Turning The Corner

May 04, 2020 10:37 AM ETU.S. Silica Holdings, Inc. (SLCA)19 Comments


  • The company turned in some better-than-expected results for Q-1 and the stock popped 21% in a single day.
  • We think as the crude market realities reassert themselves in the coming week, a lot of this gain will be lost.
  • If it trades back below $2.00, we could get interested.
  • This idea was discussed in more depth with members of my private investing community, The Daily Drilling Report. Get started today »


I've been writing so many strategy pieces recently that there hasn't been time to write much on what most of you are interested in - stock picks that can make you some money. So at least for now, we will rectify that with this article on a sand player.

I last wrote on this company last fall with a fairly positive review, although I suggested then that buyers wait for a better price. I had dabbled in another player earlier, Hi-Crush, Inc. (HCR), and managed to escape its implosion with most of my capital intact. That left me a little gun-shy in this sector and I wisely sat on the sidelines as these companies continued to implode. Some are no longer with us, but U.S. Silica Holdings (NYSE:SLCA) remains, and I think it will survive the shale train wreck on the horizon.

When the company released earnings the other day, the market was impressed with a -$.03 beat on a consensus loss of -$.43 per share and rewarded it with a 21% one-day jump. One day moves like this are rarely sticky these days, given all the negative stuff coming out of the Permian, but let's see what it has to say.


I am a potential buyer, but as before - not at today's price. I think SLCA has a turnaround story, but it could be one that takes some time to play out. I'll set a buy target a little later, when I close out the article.

Note: This article came out in early March in the Daily Drilling report.

In this article we will summarize the state of the proppant industry and give some reasons why we think SLCA holds the dominant position that it does. Finally we will set a buy target and a time horizon

This article was written by

Fluidsdoc profile picture
40 years of oilfield and analyst experience to work to find you winners.

I am an oilfield veteran of 38+ years. Retired from Schlumberger since 2015. My background is drilling and completion fluids. I have authored a number of technical papers on completion topics. I have worked around the world- Brazil, Russia, Scotland, and the Far East. I still maintain a training and consulting practice and am always willing to help people who want to learn.

New- The Daily Drilling Report is Live!

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not an accountant or CPA or CFA. This article is intended to provide information to interested parties and is in no way a recommendation to buy or sell the securities mentioned. As I have no knowledge of individual investor circumstances, goals, and/or portfolio concentration or diversification, readers are expected to do their own due diligence before investing their hard-earned cash

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