Stockchase Opinions

Eric Nuttall FTS International FTSI-N TOP PICK Apr 17, 2018

This is a newly public U.S. based pressure pumper. They haven’t even done an investor conference yet. No one has heard of it. It trades at 2.2x EBITDA, 35% free cash flow yield, which they are applying to rapidly pay down debt. (Analysts’ price target is 28.44$)

$18.750

Stock price when the opinion was issued

oil gas field services
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TOP PICK

An exciting, new stock. An American pressure pumper that endured bankruptcy. Possessese high-equality equipment and in-house manufacturing. Their margin is higher than their peers. Off the radar, and trading at a great valuation. 36% free cash flow for 2019. Nearly 50% upside. (Analysts' target of $29.33)

HOLD

A pressure pumper in the US that merged out of bankruptcy. He changed his mind on them a few months ago. Two US banks have come out defending these companies so he would not sell yet.

COMMENT

Cash flow is being crimped and contraction of demand. Nobody wants to own pressure pumper stocks now. May do well if take a 2 year view. He would have a zero exposure in the US.

PAST TOP PICK
(A Top Pick Mar 15/18, Down 38%) A US pressure pumper. His thought was this was the higher beta way to play through the service stocks. He sold it in May when it was obvious they were not performing the way he thought. This name had slightly higher financial leverage to its peers and was punished.