C & J Energy Services (CJ)

(A Top Pick Nov 15/17, Down 36%) He sold this around $27. This is a 50/50 pressure pumper and ancillary services in the US. With the drop in oil price, the outlook of spending in the US next year is not terrific. Service names have been smashed. Given the uncertainty in the outlook, it will take time to regain lost multiple on the name.

(A Top Pick November 15/17 Down 28%) The multiple contraction in the US pressure pumpers could continue to get worse. You have to be patient holding this right now.

(A Top Pick Nov 15/17, Down 14%) He got out of pressure pumping. He got out and went into other areas that have done well.

A US pressure pumper with ancillary services trading at about 4.5X next year’s EBITDA. The frac market in the US is tight, and will remain tight throughout all of next year. These companies will be able to push through more price increases. A good way to gain exposure to US pressure pumpers. (Analysts’ price target is $39.)