RE:RE:RE:Calfrac Investor RelationsI agree with EstevanOutsider that Step is a great company. I actually bought into Step just over a month ago and am up 60%. If you look at their earnings, balance sheet, ESG program and Tier 4 equipment and just listen to their ER recording it is clear that they have a VERY strong leadership team. I plan to hold STEP until the 9-10 dollar range minimal.
HOWEVER.. my biggest holding is still Calfrac as I think it is the most undervalued of all, and as soon as we see FCF one of these upcoming earnings I think it will get back to above 1 Billion Market Cap like it has been historically when times are busy. From what I hear from people that work there is that they cannot hire enough people right now and are absolutely flat out. They need to do serious price increases soon but I think the whole pressure pumping sector will pass major cost increases to their clients in H2 of this year and 2023/2024. It would not surprise me if we do not see 1.5 Billion market cap again at some point. Russia is a risk, but if you look at the ruble to CAD it crashed for 3 weeks and is now back to where it was pre-war, so the FX risk is very minimal at the moment, just might not be able to transfer money out of Russia for a while.
If you look at Scott Treadwells resume and history he was never a fracing expert to begin with, I think he was brought in by Calfrac to handle the re-finance and Wilks scenario, as his experience is in Capital Markets and banking. Once that deal was completed he moved on to be a CEO of another company, I am sure he still holds many shares in Calfrac though.
Unless Calfrac has multiple Major terrible events there is very little chance that this stock does not do great over the upcoming 1-2 years. I expect the same for TCW and STEP. We will all know soon enough !